19 May 2008 07:00
Strategic Natural Resources PLC
("SNR" or the "Company"; Ticker: (SNRP)
COAL MINING PERMIT GRANTED
Strategic Natural Resources PLC announces that its subsidiary Elitheni Coal (Pty) Limited ("Elitheni") has received written confirmation from the South African Department of Minerals and Energy ("DME") that it has been granted the necessary mining permit to commence opencast production on an identified 1,5ha area of Elitheni's Phase 1&2 coal prospecting area.
This initial 1,5ha is expected to yield circa 50,000 tonnes of saleable coal, which will be mined and supplied in 2008. Not only will this generate revenue for Elitheni, but it also fulfils a direct commitment made by SNR that production would commence prior to obtaining the long term Mining Right.
Elitheni intends to extend its production underground once it receives further clearance from the DME. Application has been made for the underground section adjacent to the granted 1.5ha area and the Record of Decision (''ROD'') is expected from the DME in November 2008. Because the two project sites are adjacent to one another, the company anticipates that site preparation work for the underground mining will be reduced to a minimum and that it will allow for uninterrupted production from the open cast area into the underground section.
Elitheni is currently finalising mining and off take contracts, and the resolution of a permit to use State owned land which forms part of the completion of the site establishment. SNR hopes to be able to announce the commencement of the opencast production within the next two months.
SNR Chief Executive Officer Jeremy Metcalfe said: "The commencement of mining will transform SNR's primary asset, Elitheni, into a production company pivotally placed in South Africa to meet the growing needs of the current coal and energy shortage. The result will see the formation of a stable revenue stream which we believe will be very attractive to our shareholders."
For further information, please contact:
Jeremy P. Metcalfe
Chief Executive
Strategic Natural Resources PLC
Tel: +44(0)1303 874 798
Allan Piper
First City Financial Public Relations
Tel: +44 (0) 20 7242 2666
Rod Venables / Cecil Jordaan
HB Corporate
Tel: +44 (0) 20 7510 8600