| SA coal magnate to spend N$68 million on Aranos coal |
|
|
| Written by Chamwe Kaira | |
|
South African coal magnate Kobus Smit will spend about N$68 million prospecting for coal in the Aranos district. Smit, who is the majority shareholder in South African coal mining group Umcebo Mining, told the Economist in an exclusive interview that prospecting for coal would start in the next few months.
“It is true that there are proven world-class coal
reserves in the area, but no one has really done extensive prospecting
because of the aquifer in the area,” he said.
Smit said buying a farm in the area or concluding any Surface Owners Agreement with farmers on whose land the prospecting would take place, will only be decided once the process begins. “We are compiling a study on the ecological system in the area and at this stage, it is too early to talk about exploration,” Smit said. Smit said he is busy registering legal entities in Namibia, which he said would carry out the mining activities should the venture turn out to be successful. Smit refused to disclose how much would be invested in the mine, if he succeeded in with prospecting process. “Talk to me in two months, I will be in a position to tell you,” said Smit. The high quality coal, fit for blast furnaces and power plants, was discovered about 30 years ago during one of Anglo American’s regular drilling surveys. In a 1991 study, the coal resource was estimated at 370 million tonnes. A mine life of 300 years was then mentioned at an extraction rate of 600 000 tonnes per year. The same study described the coal as having high carbon and low phosphorous qualities. The Economist understands that Smit has already been given an exploration processing licence (EPL) by the Ministry of Mines and Energy. Smit has had meetings with the Namibia Agricultural Union to discuss the farmers’ interests following the acquisition of the mining rights. Two weeks ago, Executive Manager of the Namibia Agricultural Union, Sakkie Coetzee said the farmers in the area were concerned about possible negative effects coal mining would have in the area. According to documents obtained by the Economist, as far back as 1992, a feasibility study was conducted to start mining coal in the Aranos area. The coal from the area, if it had been developed, could have been used in a coal power station that had been planned for Aranos. The coal was also meant to have been sold to the then TCL copper mines (now Weatherly) and the Van Eck Power Station, as well as to a iron ore mine in the Kaokoveld, which has never been developed. The costs of developing the project in 1992 were estimated at N$60 million. |
| < Prev | Next > |
|---|