WSL - Wescoal Holdings Limited - Commencement of mining operations at
WESCOAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2005/006913/06)
JSE Share code: WSL ISIN: ZAE000069639
("Wescoal" or "the company")
COMMENCEMENT OF MINING OPERATIONS AT SCHOONGEZICHT RESERVE
Wescoal shareholders are advised that the company has entered into a joint
venture agreement with Kubra Mining to mine the Schoongezicht reserve.
Schoongezicht is an opencast mining operation situated near Witbank and all the
run of mine ("ROM") will be processed at Wescoal`s Blesboklaagte processing
plant. The Schoongezicht mining operations will produce approximately 35 000 ROM
tons per month and has an estimated reserve of 350,000 ROM tons, this will
ensure the Blesboklaagte processing plant has sufficient supplies for the next
10 months. Additional mining permits have been applied for surrounding areas,
which should increase the life of mine.
The first ROM has been received and processed in September 2008 and the initial
results indicate yields and quality in line with expectations. The estimated
cost saving by getting ROM from Schoongezicht, compared to the current third
party suppliers, is between R 50 to R 75 per ton. These savings and improved
yields will only affect Wescoal`s financial results in the second half of the
current financial year to 31 March 2009.
7 October 2008
Date: 07/10/2008 13:08:54 Supplied by www.sharenet.co.za
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