21 Aug 2008 07:00
Strategic Natural Resources PLC
SNR TRIGGERS FIRST BLAST TO COMMENCE COMMERCIAL COAL PRODUCTION
AIM quoted - Strategic Natural Resources PLC ("SNR") announces that its 74% owned subsidiary, Elitheni Coal (Pty) Ltd ("Elitheni or the Company") has taken a major step forward to commence coal production at its deposit at Indwe in the Eastern Cape in South Africa.
Granted a mining permit with an approved Environmental Management Plan ("EMP") to extract coal over 1,5 ha by South Africa's Department of Minerals and Energy ("DME") in June 2008, Elitheni has been preparing an area for limited open cast mining culminating in the first blasting to remove overburden from the mining site. SNR is pleased to announce that the blast took place at midday, Monday 18 August.
This initial blast will be followed by another seven or eight blasts during the next six months over the open-cast mining area to enable approximately 50,000 tonnes of coal to be extracted by means of open-cast mining. This will be followed by a full-scale underground mining operation which has been planned to commence early in 2009 subsequent to Elitheni obtaining its underground mining licence from the DME. The underground mining plan will be implemented across the 37,000 ha over which Elitheni has exclusive rights in the Eastern Cape Province of South Africa.
SNR Chief Executive Jeremy Metcalfe said: "This has been an auspicious occasion for the Company and paves the way forward for its subsidiary Elitheni to become established as a fully operational mining company. Elitheni is the first operating coal mine in the Eastern Cape after many years. The achievement of this milestone enables IPSA Group PLC, the AIM and AltX quoted power development company, to proceed with even greater confidence to expand their plans for increased power generation in South Africa's Eastern Cape area."
For further information contact:
Jeremy P Metcalfe, Chief Executive, Strategic Natural Resources plc: +44 1303 874 798
Allan Piper/Andrew Dunn, Tavistock Communications: +44 20 7920 3150
Rod Venables/ James Reeve, HB Corporate: +44 20 7510 8600