Xceed awarded first mining right

XCEED Resources has secured the mining rights for its most advanced project, the proposed Moabsvelden thermal coal operation in South Africa.
Xceed awarded first mining right Xceed awarded first mining right Xceed awarded first mining right Xceed awarded first mining right Xceed awarded first mining right

Courtesy Xceed Resources

Staff Reporter

The ASX-listed company announced Wednesday that it would now arrange for the environmental bond and notarial registration to be posted to ensure the right becomes effective.

“We are delighted with this development. The granting of the mining right for Moabsvelden is unquestionably a significant milestone for the project and maintains our momentum towards commencing with project construction this year,” said Xceed’s managing director Ian Culbert.

Culbert said the company had made significant progress in other matters relating to its development, including building a positive relationship with Thebe Mining Resources, the proposed co-sponsor.

“Thebe’s engagement, not only with respect to the DMR but all elements of the project, is adding impetus to the project development timetable, which Xceed is pleased to acknowledge,” Culbert said.

Xceed has also received of a credit-approved offer of project finance from Standard Bank of South Africa which, together with a proposed equity subscription by Thebe for its direct project interest, accounted for about 90% of expected construction and commissioning expenses.

A coal supply contract with Eskom and approval of the remaining permits for the mine are expected shortly, the company said.

Moabsvelden is expected to have a mine life in excess of 14 years, with the potential to produce export and domestic-quality thermal coal from an open-cast, low-strip mine.

It has JORC reserves of 66 million tonnes and resources of 43.8 million tonnes, according to the company’s website.

The company owns a 70% interest in the project, which it expects to be one of the largest new mines in the Witibank coalfields.

The company also has the Roodeport and Bankfontein projects in the coalfield.

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