It is reported that South African Coal Mining Holdings had been granted the prospecting rights for the Kromkans property at Ermelo in Mpumalanga.

SACMH in a statement said that it had finalized its exploration plans for the Kromkrans property and exploration was expected to start later in the month. Test drilling results would be available after about three months.

Mr Karl Gribnitz CEO of SACMH said that "Exploration is another leg to our organic growth strategy. The granting of the prospecting rights over Kromkrans is an important and exciting development, especially due to its proximity to the Umlabu mine and as SACMH is embarking on exploration for the first time."

The property, which was situated some 30 kilometers north of the company's Umlabu mine, measured 561 ha.

Last week, the company announced it was expanding its Umlabu operations by building two new underground sections at the mine and improving its infrastructure.