30 Sep 2010 07:00
30 September 2010
Strategic Natural Resources PLC
("SNR" or the "Company")
Update on feasibility study
Strategic Natural Resources (AIM:SNRP), 74% owner of coal exploration and production assets located near Indwe in the Eastern Cape province of South Africa, is pleased to announce that it has received the logistics study on the transporting of coal from Elitheni Coal's mine to the port infrastructure in the Eastern Cape. The logistics study, which has been prepared by Ports of Africa ("PoA"), represents a further step towards completing the bankable feasibility study into the export of coal from Elitheni Coal's mine.
The logistics study comprises an assessment of the road, rail and port infrastructure in the Eastern Cape, including simulation modelling of the entire system and proposals regarding technical solutions for materials handling at mine and port. PoA have confirmed in the logistics study that it is feasible to export coal from Elitheni Coal's mine through the Port of East London in the Eastern Cape. Initial tonnage estimates in the logistics summary are 0.5 million tonnes per annum and the Board believe that this could increase to up to 2.5 million tonnes three years after the commencement of coal exports from Elitheni Coal's mine.
The Board will now undertake a review of the alternative transport proposals through further discussion with Transnet Freight Rail ("TFR") and Transnet National Port Authority ("TNPA") to define access rights and design of the rail system and tenure at the Port of East London.
The logistics study represents the second phase of SNR's export feasibility study. The first phase was the updating of the competent person's report on Elitheni Coal's coal and production assets and this was announced on 21 July 2010. The third and final phase of the export feasibility study is the washability and the market application studies. These are currently being undertaken and are expected to be delivered to the Company prior to end of the current year. Completion of the full bankable export feasibility study is contingent on the delivery of these reports and the conclusion of agreements with both TFR and TNPA regarding pricing and delivery of the necessary rail and port upgrades.
David Nel, CEO of SNR, commented "The logistics study confirms that local transport capacity to deliver coal from the mine to the port is available and can be upgraded to provide a basis for our export plans. It also confirms that there is sufficient capacity at the Port of East London to allow exports of coal in Handysize vessels with a reasonable level of upgrade. If the final elements of the export feasibility study are as positive we are targeting commencement of regular exports from 2012."
For further information, please contact::
Strategic Natural Resources plc
David Nel, Chief Executive Officer
+27 (0) 41 374 0842
Jeremy Metcalfe, Communications Director
+44 (0)7785 346 718
Nominated Adviser and Joint Broker - Allenby Capital Limited
Nick Naylor / James Reeve
+44 (0) 20 3328 5656
Joint Broker - SP Angel Corporate Finance Limited
Emin Eyi / Tercel Moore
+44 (0) 207 647 9646
Financial PR/IR - Blythe Weigh Communications
+44 (0) 207 138 3204
Ana Ribeiro / Tim Blythe / Matthew Neal
For further information about Strategic Natural Resources plc please visit www.snrplc.co.uk.