Holfontein

Map indicating location of Holfontein properties
Ownership
100%
Location
Witbank coalfield, East of Johannesburg.
Area
1160.8 hectares.
Resource
55 million (inferred).

Overview

Holfontein is located near the middle of Sasol’s Secunda coal production area. It has remained undeveloped due to interpreted geological complexity. This project is currently held for sale by Coal of Africa.

On 2nd February 2010 the Department of Mineral Resources (DMR) granted a New Order Mining Right with an approved Environmental Management Plan (EMP) for Holfontein.

Two coal seams at Holfontein are commercial targets: Number 4 Lower Coal Seam, and the shallower Number 5 Coal Seam. The low vitrinite, moderate to high ash coal of Number 4 Coal Seam currently mined in the area, is sold as raw coal to Eskom for its coal fired power stations or is used by Sasol in its synthetic fuels plants at Secunda. Number 5 Seam contains high value coal in narrower seam widths and is typically found in two horizons of bright coal, 80cm and 30cm thick. As part of the bankable feasibility it is planned to test the feasibility of mining the two horizons together with the parting and washing the run of mine ore at surface level.

Future

Composite samples of the Number 5 Seam are to be tested for certain metallurgical properties, while similarly the Number 4 Lower coal seam samples will be tested for suitability for consumption by Eskom.

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