JOHANNESBURG (miningweekly.com) – A definitive feasibility study (DFS) for the Waterberg Coal Company’s (WCC’s) standalone export project has been commissioned, as discussions for the funding of the project get under way, the ASX- and JSE-listed group announced on Friday.
WCC, which was still in talks with State-owned power utility Eskom to resolve the outstanding requirements to convert the Waterberg coal project’s (WCP’s) offtake memorandum of understanding into a coal supply agreement (CSA), said the DFS would be completed by the Snowden Group by mid-December.
The group was also in “advanced discussions” with a number of prospective undisclosed buyers of the export product, with an announcement regarding this matter expected before the end of November.
Further, an agreement with Transnet Freight Rail for the transport of the export product from the Waterberg to Richards Bay Coal Terminal was expected to be concluded in November.
Meanwhile, WCC expected to resolve all outstanding requirements to cement the CSA, including coal specification finalisation, final pricing, delivery dates and the provision to Eskom of a satisfactory due diligence report on the DFS, early in 2015.