It is reported that Firestone Energy and its joint venture partner, Sekoko Co Ltd are confident that their Waterberg coal project is the most cost competitive project in South Africa second only to Exxaro Grootgeluk.
Waterberg is adjacent to the 30 year old Exxaro Grootegeluk coal mine within the Limpopo region and FSE and Sekoko believe that the proximity of infrastructure to its planned open cast coal mine will aid cost competitiveness within the large Waterberg Coal region.
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 5 kilometers from Grootegeluk existing mine pit and also only 10 kilometers away from the currently built Medupi Power station.
These benefits provide cost effective propositions to potential off takers such as Eskom 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 the company rail spur have confirmed that the distance to connect to the existing Transnet Freight Rail line is approximately 7 kilometers 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 kilometers 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 main objective is to assist with maintaining energy security in South Africa and can achieve this in a cost competitive manner resulting in consistent supply of electricity at relatively low prices especially when the country has a shortfall of power requirements.
(Sourced from www.proactiveinvestors.com.au)
