Bisichi pins hopes for 2011 on new coal reserves

Bisichi Mining says that its Black Wattle Colliery in South Africa will make a loss this year because of transport problems and the strength of the South African Rand.There was a shortage of rail trucks to deliver coal so stocks mounted up. Black Wattle has agreed to contract mine and purchase coal from a nearby opencast mine with 3m tonnes of coal reserves. Mining costs will be significantly lower than Black Wattle because of the quality of the reserves. The low phosphorus coal can be sold to the local metallurgical sector. These additional reserves should make a significant contribution to 2011. Rental income from Bisichi's UK property portfolio is steady.