25 Nov 2009 07:00
25 November 2009
Strategic Natural Resources plc (AIM: SNRP)
SNR Subsidiary More Than Doubles its Coal Prospecting Rights Area
Strategic Natural Resources PLC ("SNR") is pleased to announce that its 74% owned subsidiary, Elitheni Coal (Pty) Ltd ("Elitheni" or the "Company") has been awarded an additional 119,374 ha of exclusive new order prospecting rights in the Eastern Cape coalfield, in addition to its current phase 1, 2, 3 and 4 prospecting rights measuring 64,877 ha in area. This latest addition means that the Company finishes the 2009 calendar year having acquired exclusive prospecting rights over approximately 185,000 ha (1,850km2), an area nearly five times the size with which it started the year.
No other prospecting or mining rights for coal have been granted to any other business in the Eastern Cape. The Company has secured these additional rights in response to the heightened market demand, IPSA Group PLC's power generation development plans and as a result of the increasing demand for export coal being experienced in South Africa.
The new prospecting rights, which represent 'Phase 5' of the Company's development in the Eastern Cape, has been named "Project Indlovu", being the Xhosa word "elephant", because the shape of the area clearly depicts an elephant's head and appropriately represents a strong move forward for the Company. The new prospecting rights provide the Company a period of 5 years plus an option to renew for 3 years, in which to prove coal sufficient to apply exclusively for a 30 year mining right over the most mineable area of the additional land. Project Indlovu is situated on the main rail line to the new deep water port at Port Elizabeth, Coega, some 500km away. The port is capable of handling 180,000 tonne cargo vessels.
Based on the size of the area, the identifiable outcrops of coal and the presence of old coal workings, the Directors believe that this new area, could, in due course add significant additional tonnage to Elitheni's current in situ coal.
SNR's Chief Executive, Jeremy Metcalfe said "The definite increase in demand for our Elitheni coal in terms of local markets as well as export markets bodes extremely well for the future of SNR. With the recent interest taken in SNR by Coal of Africa Limited, SNR will be looking to exploit a trading and export advantage with this coal, given its strategic location and access to a deep water port."
IPSA Group PLC ("IPSA") is a developer of independent electricity generation projects in southern Africa. It owns the first independent gas-fired cogeneration plant in Newcastle, KwaZuluNatal and IPSA intends to develop up to 1,000 MW of coal-fired plant based on the Elitheni coal resource.
For further information contact:
Strategic Natural Resources PlcJeremy Metcalfe, CEO +44 (0)1303 874 798
Strategic Natural Resources PlcDavid Nel, COO +27 41 374 0842
Allenby Capital Limited (Nominated Adviser) Rod Venables / James Reeve +44 (0)20 3328 5656
SP Angel Corporate Finance LLP (Broker) Emin Eyi / Tercel Moore +44 (0)20 7647 9650
Blythe Weigh Communications (Public Relations)
Ana Ribeiro / Tim Blythe
+44 (0) 20 7138 3206 / +44 (0) 20 7138 3205