| Wed 24 Mar 2010, 8:30 | | WSL - Wescoal Holdings - Recent Developments at Wescoal and Transfer of Listing |
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WSL
WSL
WSL - Wescoal Holdings - Recent Developments at Wescoal and Transfer of Listing
to the Main Board of the JSE Limited
WESCOAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2005/006913/06)
JSE Share code: WSL & ISIN: ZAE000069639
("Wescoal" or "the Company")
RECENT DEVELOPMENTS AT WESCOAL AND TRANSFER OF LISTING TO THE MAIN BOARD OF THE
JSE LIMITED ("JSE")
1. Khanyisa Colliery ("Khanyisa")
The incorporation of Khanyisa into the group with effect from 1 October
2009 went according to plan and Wescoal has employed the necessary skills
to maximise the profitability of the mining operation. The first opencast
pit, East Pit, commenced operation late December 2009 and by end of March
2010 a total of 400,000 tons of run of mine ("ROM") will have been
extracted. The second opencast pit, West Pit, has commenced operations
during March 2010 and 80,000 tons of ROM is expected to be extracted by the
end of March 2010. These operations together will, based on current
production achieved, exceed our stated objective of 1,2 million tons per
year.
Wescoal is currently busy with an active drilling and exploration program
on Khanyisa and nearby reserves to ensure that production can be maintained
at the target of 1,2 million tons per annum. In addition the group is
exploring a number of additional opportunities that have arisen out of the
pending expiry of rights issued in 2004 and 2005.
In a joint venture with a BEE company, Wescoal secured a three year
contract to provide Eskom with coal product. This venture is on track to
deliver the initial order of 100,000 tons to Eskom by the end of March
2010.
2. Coal market
International coal markets have strengthened with the API#4 prices holding
steady at around $80 per ton. This strengthening has been driven by the
depletion of stock piles due to the severe northern hemisphere winter and
the general recovery of world markets. This has however done little to
change the outlook for the trading division as the ongoing logistical
problems associated with the export of coal continue. Surplus coal stocks
are still evident and inland coal pricing has remained static.
3. Transfer from the Altx to the Main Board of the JSE
Following the Group`s successful expansion into mining the board of
directors has decided to apply to the JSE for the transfer of Wescoal`s
listing to the main board of the JSE. The move to the main board will
position Wescoal alongside comparable coal mining companies.
Details of the transfer will be announced once JSE approval has been
obtained.
Johannesburg
24 March 2010
Designated Advisor
Exchange Sponsors
Date: 24/03/2010 08:30:01 Produced by the JSE SENS Department.
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