| Mon 6 Apr 2009, 8:55 | | MMH - Miranda - Project update on Sesikhona Kliprand Colliery |
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MMH
MMH
MMH - Miranda - Project update on Sesikhona Kliprand Colliery
MIRANDA MINERAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/001940/06)
Share code: MMH
ISIN: ZAE000074019
("Miranda" or "the company" or "the group")
Project update on Sesikhona Kliprand Colliery
1. MINING LICENSE EXECUTED
The board is pleased to announce that the mining license on the group`s
Sesikhona Kliprand Colliery (Pty) Ltd ("Sesikhona") project has been executed
with the Department of Minerals and Energy ("DME"). As the group`s first coal
mining license, the execution of the Sesikhona mining license represents a
significant achievement for the coal division. The Sesikhona project is the
first in Miranda`s pipeline of coal projects in KwaZulu-Natal ("KZN") to move
into production phase.
Miranda is already well-advanced in its site establishment, which includes the
workshops, offices, ablutions and settling ponds. It has also embarked on a
number of social and community projects, such as the establishment of a soccer
field and the relocation of certain communal facilities.
2. CANCELLATION OF MINING JOINT VENTURE ARRANGEMENTS
The board is furthermore pleased to announce that it has, by mutual agreement,
negotiated a cancellation of its joint venture mining contract with Ihlosi
Project Mining CC ("Ihlosi"). Ihlosi has paid a non-refundable R1 million
deposit in terms of this agreement. Ihlosi initially also warranted a minimum
production rate of 30,000 tons for which it would have paid Miranda R50 per ton
of coal mined. Miranda will now be in a position to get more directly involved
in, and to derive greater potential benefit from the mining of the Sesikhona
deposit.
As communicated to shareholders previously in the 2008 Annual Report, "the board
has taken the decision to maintain full managerial and operational involvement
with the development of Miranda Coal as it believes this approach to offer
optimal value creation for shareholders". The Ihlosi JV agreement was entered
into at an early stage of the development of the group`s business model, and at
a time when the group`s emphasis was on mitigating operational mining risk. The
cancellation of the Ihlosi agreement now leaves Miranda Coal free to retain
active involvement in all of its projects through to the full-scale mining
phase. This may be done either by acquiring in-house the necessary technical
expertise or by contracting it in from specialist mining and marketing service
providers.
3. FUTURE COURSE OF ACTION
Given that Miranda Coal has now taken on full operational control over
Sesikhona, it has appointed a project manager and is moving forward with the
project plan on a number of fronts. These include:
- completion of full site establishment and infrastructure requirements;
- implementation of the initial aspects of the social and labour plan, as
well as the heritage impact assessment program; and
- finalising arrangements with the earth-moving and mining subcontractors.
The revised project plan allows for open cast mining to commence within 60 days.
Sesikhona will stockpile until the washing plant is commissioned.
4. BACKGROUND
Sesikhona is located approximately 11 km`s from Dannhauser in KZN and consists
of four contiguous farms covering an area of 864 ha. As previously announced, a
total resource of 22 million tons has been identified of which 5.4 million tons
is at measured status. The deposit consists of high grade anthracite and
approximately 40% is estimated to be mineable using open-cast techniques.
Miranda holds an interest of 73% in the Sesikhona project through its wholly-
owned subsidiary Miranda Coal, the remainder being held by empowerment partners
and the Kliprand Community Trust.
Pretoria
6 April 2009
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Corporate adviser
Touchstone Capital (Pty) Ltd
Date: 06/04/2009 08:55:01 Produced by the JSE SENS Department.
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