| Fri 19 Nov 2010, 8:07 | | FSE - Firestone Energy Limited - Operations Update |
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FSE
FSE
FSE - Firestone Energy Limited - Operations Update
FIRESTONE ENERGY LIMITED
(formerly: Centralian Minerals Limited)
(Incorporated in Australia)
(Registration number ABN 058 436 794)
Share code on the JSE Limited: FSE Share code on the ASX: FSE
ISIN: AU000000FSE6
(SA company registration number 2008/023973/10)
("FSE" or "the Company")
OPERATIONS UPDATE
FSE/Sekoko is adamant that the proximity of infrastructure to its planned open
cast coal mine will aid cost-competitiveness within the large Waterberg Coal
Region in South Africa.
Firestone Energy Limited (ASX /JSE : FSE) and its joint venture partner, Sekoko
Coal (Pty) Ltd are confident that their project is the most cost competitive
coal project second to Exxaro`s Grootgeluk. The FSE/Sekoko project is the
closest to the existing infrastructure including water pipelines, electricity
connection points and rail. The FSE/Sekoko mine being developed is only 5kms
from Grootegeluk`s existing mine pit and also only 10kms away from the currently
built Medupi Power station.
These benefits provide cost effective propositions to potential off-takers such
as Eskom`s Waterberg power stations especially if Eskom act on their strategy to
develop and accept new coal suppliers in addition to the existing Grootegeluk
Exxaro mine.
The rail experts designing our rail spur have confirmed that the distance to
connect to the existing Transnet Freight Rail (TFR) line is approximately 7kms
using design parameters that comply with TFR`s requirements. The management of
the FSE/Sekoko Waterberg project are confident that a relatively short distance
such as this will not only be cost effective, but will also reduce time to
implement the rail spur, reduce work on environmental compliance, require
servitude from one external land owner and can be easily funded. Work has
commenced on the Environmental Application for the rail link.
The existing water pipeline from Mogol dam to Grootegeluk, Matimba Power
station, serving Lephalale town passes approximately 15 kms away from the
proposed initial pit. The second pipeline which will serve Medupi will also be
installed in the vicinity.
Negotiations have been concluded with Eskom power supply division to supply the
main project with full power from commissioning, eliminating the need to use
costly diesel generators.
FSE/Sekoko`s main objective is to assist with maintaining energy security in
South Africa. It is a bonus and a privilege that the FSE/Sekoko project can
achieve this objective in a cost competitive manner resulting in consistent
supply of electricity at relatively low prices and especially when the country
has a shortfall of power requirements.
Further information can be obtained by contacting the persons below on
+61 (08) 9287-4600.
John Dreyer Sizwe Nkosi
Chairman Non Executive Director
www.firestoneenergy.com.au
About Firestone Energy
Firestone Energy is an independent Australian exploration company focused on
developing coal projects in South Africa. The company is currently exploring the
richly endowed Waterberg coal field in Limpopo Province of South Africa.
The Company is committed to value-added growth through becoming an independent
coal and energy produces at its projects in South Africa.
The Company has entered into three joint ventures with Sekoko Resources, a South
African black empowerment company (BEE) and Sekoko has two directors on the
Board of Firestone Energy.
Corporate Details
ASX: FSE
Issued Capital:
2,401 million ordinary shares
Major Sharholders:
Sekoko Resources (Pty) Ltd
Colbern Fiduciary Nominees Ltd
Bell Potter Nominees Ltd
Directors and Officers:
John Dreyer (Chairman)
Timothy Tebeila (Deputy Chairman)
Colin McIntyre
John Wallington
Company Secretary
Jerry Monzu
Contact:
Level1, 63 Hay Street Subiaco, Western Australia 6008
Tel: +61 (0)8 9381 2755
Web: www.firestoneenergy.com.au
Pretoria
19 November 2010
Sponsor and Corporate Advisor
River Group
Date: 19/11/2010 08:07:01 Produced by the JSE SENS Department.
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