Member Info for substp

Given the high transport costs for coal (rail), gasification near the mine and piping the gas to markets in East London, Grahamstown (ceramics)and Port Elizabeth/Ngqura should be considered. In addition, Badimo Gas (Pty) Ltd is exploring the potential for coal bed methane (CBM) in the Molteno-Indwe coalfield. The Molteno-Indwe coals could constitute a potentially important feedstock for the province’s job creation strategies, in the form of coal, coal gas (syngas) or methane(CBM) and the province, through ECDC, should urgently assess this resource and the developments on it to ensure its optimal exploitation in terms of downstream job creation. The Eastern Cape currently has no power stations and almost all electricity is imported, though there are some small sustainable energy projects under development (wind,hydro-electric and biomass). However, there could be potential power generation projects at Ngqura (combined cycle gas turbine, or CCGT) based on imported liquified natural gas (LNG) (methane), at St Francis Bay (nuclear) and in the Molteno-Indwe vicinity, based on local coal/gas. Exploration for offshore hydrocarbons has thus far not yielded any resources. However, some of the blocks may warrant further exploration, especially the Algoa Canyon.

A must read...... Eastern Cape Provincial Jobs Strategy 2012 PDF file created 22.06.12 Adobe pages 24 through 28.....5.4 Minerals through 5.5 Energy http://www.dedea.gov.za/Policies/Eastern%20Cape%20Provincial%20Job%20Strategy%202012.pdf

Eskom to finalise tariff application by August By: Idéle Esterhuizen 19th July 2012 "“We are very conscious of the impact of tariffs on job creation and economic growth in South Africa. But we must also be conscious of the fact that we need to invest in capacity. Not just us [Eskom], but the broader industry and private sector as well,” he noted." http://www.engineeringnews.co.za/article/eskom-to-finalise-tariff-application-by-august-2012-07-19

Published:2012/07/11 04:00:52 PM BM=Brian Molefe, Transnet Group CEO STV: Transnet has repeatedly thwarted efforts by the private sector to run or build private rail infrastructure. Why is that? BM: No, we haven’t. STV: Would you welcome the private sector into operating rail transport? BM: We have said that the branch lines will be concessioned out. These are the non-core branch lines, where we are inviting private operators, especially in the instance of agriculture and so on. That is a policy that stands. STV: What proportion of the total rail lines does that represent? BM: It is not a very big proportion — the bulk of the railway lines are core, such as the Sishen-Saldanha corridor, the Cape Town-Johannesburg corridor, the Johannesburg-Port Elizabeth corridor and the Johannesburg-Durban and Richards Bay corridor. There are lines that are underutilised and some that are not being used at all, and those we are ready to concession off. STV: How far is that process? BM: We have started. There were requests for expressions of interest in the branch lines, and this year we will request proposals. http://www.businessday.co.za/articles/Content.aspx?id=176069

Commencement of Opencast Operations Gallery The boys and girls at work.......:-) http://www.elitheni.co.za/opencast-gallery/

http://tinyurl.com/d24ynyl

For those who are uncomfortable with this company I suggest you go elsewhere and buy into these other compnies.It's your decision to make. You don't have to be here wasting your time if that's what one thinks. :-)

The South African “Carbon-Dioxide Geological Storage Atlas” launched in 2010 identified significant (150 Gigatons) potential CO2 storage capacity in the country. One of the potential areas identified is the south-eastern part of the Indian Ocean. The Nelson Mandela area can potentially become an important export hub for the implementation of CCS technologies. http://www.energy.gov.za/files/media/speeches/2012/MinisterSpeech_BlackBusinessDinner_06July2012.pdf

Though not mentioned I would like to point out a few things. I wonder if any of our lads were there?: Address by the Minister of Energy, Ms. Dipuo Peters Black Business Dinner, Nelson Mandela Bay Metro 6 July 2012 Programme Director, Leadership of the Eastern Cape Provincial government; Members of the Eastern Cape Legislature; Mayor and Councilors of Nelson Mandela Metro and senior officials; Business leaders from the various business sectors in Nelson Mandela Bay and surrounding area, It is important to note that the catalytic projects listed under SIP 3 are not the only SIPs that will have a bearing on this part of the country. There are also so-called Energy SIPs which included the following: • SIP 8: “Green Energy in support of the South African economy”. This is to support sustainable green energy initiatives on a national scale through a diverse range of clean energy options as envisaged in the IPR2010 and to support biofuel production facilities. • SIP 9: “Electricity Generation to support socio-economic development” This is to accelerate the construction of new electricity generation capacity in accordance with the IRP2010 to meet the electricity generation needs of the country to ensure economy growth and to address historical imbalances. The IRP2010, as promulgated in May 2011, proposed various technology options that addresses the additional capacity of 42 000 mega-watts requirement by 2030.  Wind 8400 mega-watts (MW)  Solar PV 8400 MW  Concentrating Solar Power 1000 MW  Open Cycle Gas Turbine 3900 MW  Gas Closed Cycle Gas Turbine 2400 MW  Import Hydro 2600 MW  Nuclear 9600 MW  Coal 6300 MW The current reality is that more than 65% of South Africa's total energy needs are met through coal as the primary energy source. This is followed by crude oil at around 22%, while the remaining 13% of our energy needs are met by gas, nuclear, hydro and renewable energy sources combined. Irrespective of the fact that we are a coal-rich economy, government is committed to have an increased focus on the advancement of clean coal technologies through projects such as underground coal gasification, as well as carbon capture and storage (CCS). CCS is a key potential greenhouse mitigation option for the country and as the energy sector we are committed to its implementation. We want to invest in CCS technologies, and efforts have been made to scale these technologies up to a commercial scale. In this regard, the South African Centre for Carbon Capture and Storage (SACCS) under SANEDI was established to support development and deployment of geological sequestration in the country The South African “Carbon-Dioxide Geological Storage Atlas” launched in 2010 identified significant (150 Gigatons) potential CO2 storage capacity in the country. One of

"Mr. Mark Rosslee has been appointed to the board of Elitheni in South Africa and as financial controller of SNR. Mr. Rosslee has over 20 years of experience in the resources industry, having served on the boards of NAMDEB, a division of De Beers, as well as several mid-tier and junior listed resource companies. We welcome his experience in support of Elitheni and SNR." http://za.linkedin.com/pub/mark-rosslee/b/965/347

President Zuma-BBC http://www.bbc.co.uk/news/world-africa-18669310

Interesting TSI12......If it's true we'll see a lot more on it......But I suspect it's sour grapes coming out of the woodwork......I do expect some kind of Rent Tax though......:-)

and again......:-) No nationalisation of mines: ANC Saturday 30 June 2012 07:31 SABC http://www.sabc.co.za/news/a/5c5c08004bcd39aaa12fed251f96d6cc/No-nationalisation-of-mines:-ANC-20123006

And again......I take it the Super tax won't be as super either...........:-)) No nationalisation of mines Sat, 30 Jun 2012 7:49 AM http://news.iafrica.com/sa/803191.html

"South Africa’s ruling African National Congress failed to reach an agreement on imposing new mining taxes, while ruling out nationalization." “The greater consensus was that there should be greater state intervention,” Godongwana said. “We agree on principal that the tax instruments may be utilized to capture the mineral rent.” "ANC delegates agreed that nationalization of mines is “inappropriate,” Godongwana said." http://www.bloomberg.com/news/2012-06-29/south-africa-s-anc-fails-to-reach-decision-on-mining-tax.html

"The headline-grabbing measure is a proposed resources-rent tax that will render unto Caesar 50% of mining “super-profits”, which are defined as returns over a threshold calculated by adding 7% to the interest rate on long dated government bonds. The draft document suggests that as much as R40-billion a year can be raised for the fiscus from the super-tax. That is more than a quarter of the current budget deficit." http://mg.co.za/article/2012-02-10-a-rich-seam-to-be-mined

http://www.fin24.com/Economy/Zuma-Whites-still-control-SA-economy-20120626 "Equitable share" The allocation of revenue to the national, provincial and local spheres of government as required by the Constitution. See also division of revenue."

Base load programmes coming soon: Energy Dpt There is a plan to introduce base-load programmes for the integrated resources plan (IRP) 2010 coal and gas projects within the next few weeks‚ the Department of Energy said on Thursday. http://www.businesslive.co.za/southafrica/sa_markets/2012/06/28/base-load-programmes-coming-soon-energy-dpt

http://www.businessday.co.za/articles/Content.aspx?id=175014

Good thing we're not in the market yet....:-) We are taking the time to build stock of the different values and are building a "Production Profile". Also remember that higher value anthracite prices aren't as volatile. This is why it would be so good to sell coal to the domestic market as you won't have any of these export problems.Ie minemouth power and the Craddock Biofuel plant and anything else the IDC may throw our way.