Modern Mining February 2017

MINING News

Opencast operations start at New Clydesdale

coal export market and further advances our revenue diversification strategy. “Upon achieving steady state at NCC mid-2017, Universal and our partners will be producing saleable coal at a rate in excess of 4 Mt/a over our two operations from a total ROM exceeding 6,5 Mt/a. We expect NCC to generate robust cashflow, complementing contributions from our first mine at Kangala, positioning Universal well to fund future growth while underpin- ning a dividend return going forward. We remain growth oriented with a focused and disciplined approach in advancing our excellent project pipeline for further organic growth,”Weber continued.

ASX-listed Universal Coal has secured a five-year, 650 000 sales tonnes per annum export contract with a global commodities trader, providing additional security for the New Clydesdale Colliery (NCC) debt facility and enabling commencement of opencast operations. The opencast operation represents the second phase of the planned 3,3 Mt/a ROM NCC development, following the com- mencement of underground operations in September 2016. The underground operation delivers primarily 6 000 kcal thermal coal, focused on the export markets, from the Diepspruit shaft, and is set to achieve nameplate annualised tonnage rates of 900 000 t/a ROM by the end of the current quarter. Opencast operations will deliver a further 2,4 Mt/a ROM premium quality domestic thermal and ‘low phos’ metallur- gical coal from the adjacent Roodekop pit once steady state is achieved in mid-2017, translating to contracted sales tonnes of 1,2 Mt/a to Eskom and 0,1 to 0,2 Mt/a of low phos metallurgical coal sales. Universal’s CEOTonyWeber commented: “With both the Eskom and the long-term export offtake agreements now secured for NCC, the debt funding is now near complete, thereby having allowed for the commencement of the Roodekop open- cast operation. Additionally, the long-term export coal contract provides us with sig- nificant exposure to the improved thermal

During the December 2016 quarter, NCC delivered first export quality coal sales totalling 107 570 tonnes from the Diepspruit underground operation, ramp- ing up from 27 710 tonnes in October to 42 860 tonnes in December. Currently two of the three coal handling and preparation plants (CHPPs) are operating, with the third CHPP set to be operational by the end of the first quarter of 2017. Tr o l l ope M i n i ng S e r v i ce s, t he appointed opencast mining contractor for the Roodekop operation, has started site establishment activities and has also commenced with stripping overburden in lieu of the box cut development.  demonstration plant programme has been a remarkable success,” comments Brandon Munro, CEO of Bannerman. “Not only have we consolidated Etango’s position as one of the most advanced large uranium proj- ects globally, but we have also generated substantial opportunities to enhance and further de-risk the Etango project. “Combined with the excellent internal engineering our team has undertaken over the last year, and partnering with AMEC Foster Wheeler, we can now evaluate a stream of potential capital and operating cost wins that should collectively deliver a DFS Update which substantially improves Etango’s forecast economics.” 

Bannerman starts on update of Etango DFS ASX-listed Bannerman Resources has startedwork on a Definitive Feasibility Study (DFS) update for its flagship 100 %-owned Etango uranium project located in Namibia. This follows the successful completion of the Etango heap leach demonstration plant programme.

The six-phase demonstration plant pro- gramme was initiated in 2014 with excellent results reportedly being generated across all phases. Among other things, the test- work demonstrated exceptional leaching dynamics (93 % extraction in 22 days) and lower acid consumption (14,4 kg/tonne), confirming Etango’s low potential risk. “Our two year commitment to the Etango

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