miningmx.com reported that Firestone Energy, the Australian resources company that plans to develop coal projects in South Africa, on hoped to conclude the renegotiation of a memorandum of understanding with SA power utility Eskom in this quarter.

Firestone in an update on its quarterly activities said that "The board and Eskom's designated project team are working to finalize a revised memorandum of understanding, during Q4 2011.”

Renegotiation of the agreement has been undertaken in a bid to improve tonnages and to extend the supply period.

Firestone's flagship project is the Waterberg Coal Project in the Limpopo Province, which is said to contain about 50% of South Africa's remaining coal resources.

The company said that "The immediate outlook for the company is to focus upon successfully concluding the renegotiation of its Eskom memorandum of understanding and the achievement of a satisfactory outcome with the proposed cornerstone investor.”

Firestone's joint venture with Sekoko Resources has granted an exclusive period with a major, multinational listed mining and power company to conduct due diligence on the project.

It is intended the company would present a firm development proposal to Firestone at the end of its due diligence process.

The company said that "Successful completion of the due diligence by the global power company may result in Firestone securing a cornerstone investor that has the potential to inject cash and to provide significant off-take.”

(Sourced from miningmx.com)