If the opencut mine proves feasible it could produce up to 2.5 million tonnes per annum of thermal coal, with the possible added benefit of 500,000t of metallurgical coal over a mine life of more than 20 years.

The Mmamabula coal resource is an extension of the Waterberg Coalfield, where Kumba operates its flagship Grootegeluk coal mine – South Africa’s largest coal operation and the world’s largest coal beneficiation complex.

Kumba said based on the results of a comprehensive drilling program in the next few months, a decision could be taken by mid-2006 to continue with a full feasibility study.