17 Mar 2009 08:00
17 March 2009
STRATEGIC NATURAL RESOURCES PLC (AIM: SNRP)
BRICKYARD PARTNERSHIP YIELDS POSITIVE RESULTS
FOR STRATEGIC NATURAL RESOURCES PLC
Strategic Natural Resources PLC ("SNR") announces that its 74% owned subsidiary, Elitheni Coal (Pty) Ltd ("Elitheni" or the "Company") has established a successful working model whereby brick manufacturing concerns in the Eastern Cape can utilise SNR's anthracite coal in the brick manufacturing process.
Towards the end of 2008, Elitheni formed a strategic relationship with two local firms in order to conduct trial tests in the brick manufacturing industry in the Eastern Cape. Traditionally the brick manufacturing process has utilised a high volatile or bituminous coal from the Northern parts of South Africa. This coal is transported over 1000km to the local brick manufacturing concerns at an enormous cost to the brick manufacturer.
SNR is pleased to report that the partnership formed last year has yielded successful results and Elitheni is now able to offer a proven working model to brick manufacturing concerns in the Eastern Cape. This has created an opportunity for brick manufacturers to utilise a far more cost effective fuel. As a result of this development, Elitheni is planning a succession of coal face blasts in order to ensure sufficient supply to meet demand.
SNR's Chief Executive Officer Jeremy Metcalfe said "This is a very important milestone and supply stream as it allows Elitheni to ramp up production in preparation for the envisaged industrial demand, expected to come on stream towards the end of 2009. Elitheni is proud to be associated with the firms who have made this possible."
For further information contact:
The Company:
Jeremy P. Metcalfe, Chief Executive Strategic Natural Resources plc Tel: +44 1303 874 798
David J. Nel, Chief Operations Officer
Strategic Natural Resources plc
Tel: +27 41 374 0842
Nominated Adviser:
Rod Venables/James Reeve HB Corporate Tel: +44 20 7510 8600