GVM said it would undertake a bankable feasibility study with empowerment partner Motjoli Resources when it receives the new mining titles – expected early 2006.
GVM (49% share) and Motjoli (51% share) teamed up mid-2005 to develop the Holfontein mine.
The BRSW Mining Consultants study estimated the project’s in situ coal resource at 56Mt, showed an internal rate of return of 41%, and estimated GVM’s 49% interest had a NPV of $A19 million.
GVM said it plans to mine 140,000 tonnes of coal per month from two coal seams and will employ about 250 people. Both coking coal for export and thermal coal bound for the Eskom power station will be extracted from the mine.
The mine will be accessed via twin downcast 9 degree decline shafts placed 10m apart – one for equipment and material and one for the conveyor belt and personnel access.
A continuous miner will be used to extract coal from the thicker Seam 4 (2.4m). A drill and blast section will also be included in standby to handle any remnants and dykes that are lower than 2.4m. GVM anticipates mining 70,000 tonnes per month from Seam 4.
Most of Seam 5 in the surrounding area has been mined using drill and blast equipment in bord and pillar mining. Three complete sets of equipment would be required to mine 70,000 tonnes per month.
