Aviva upgrades African resource

AUSTRALIAN-listed Aviva Corporation is ready to move forward with confidence after yesterday announcing it had upgraded its 1.3 billion tonne Mmamantswe coal resource in Botswana from inferred to indicated.

Angie Tomlinson

“The upgrade of the resource to the indicated category allows the company to move ahead with mining studies designed to upgrade the resource to a reserve over the next 12 months,” Aviva CEO Lindsay Reed said.

Reed said the project was a low strip ratio openpit thermal coal deposit capable of supporting a 6 million tonne per annum power station and a similar external sale quantity if required.

The project is within 55 miles of a coal link rail network that will connect new power developments proposed by South African power supplier Eskom.

The company said it believed its Mmamantswe resource was a "credible" supply option for Eskom under its future plans.