PETMIN LIMITED - PETMIN SECURES EXTENSION TO EXISTING MINING LICENCE AT SOMKHELE ANTHRACITE MINE

 	
  

PETMIN LIMITED

Incorporated in the Republic of South Africa

Registration Number 1972/001062/06

Share Code JSE: PET & ISIN: ZAE000076014

Share Code AIM: PTMN

("Petmin" or "the Company")




        PETMIN SECURES EXTENSION TO EXISTING MINING LICENCE AT SOMKHELE
                               ANTHRACITE MINE


Petmin is pleased to announce that it has been granted a twenty-year mining licence for an expansion to
new mining areas at its flagship Somkhele anthracite operation in northern KwaZulu-Natal, South
Africa.


The new licence is in addition to the existing twenty-year licence covering existing reserves, and will
facilitate the expansion of operations by South Africa's biggest producer of metallurgical anthracite. It
secures reserves for the second processing plant at Somkhele, which was commissioned early in 2012,
and is operating at full capacity.


The mining right granted on 5 July 2012 by the South African Department of Mineral Resources
('DMR') gives Petmin consent to mine the new mining areas of KwaQubuka and Luhlanga, which
have a combined size of 706 hectares.


Including the new areas, Somkhele has a twenty-year life of mine at an opencast production capacity in
excess of 1.2 million tonnes per year of saleable anthracite.


'The new licence from the DMR consolidates Petmin's position as South Africa's largest producer of
metallurgical anthracite,' said Petmin chief executive Jan du Preez. 'We expect to start producing
saleable product from the new mining areas within the next 12 months.'


Petmin has prospecting rights covering a total of 22,000 hectares around Somkhele, of which about
10% is covered by existing operations and the new mining areas. Mining licence applications for the
remaining areas will be submitted within 12 months.



Petmin has created more than 950 jobs at Somkhele since the mine was commissioned from a
brownfield site in 2007, with 80% of these jobs having been filled by members of the local community.
A further 200 new permanent jobs may be created when mining operations start at Luhlanga and
KwaQubuka, with further temporary jobs in construction and road works.



 	
  
 	
  


Somkhele produces metallurgical anthracite for export via Richards Bay (55% of production in
2010/11) to iron ore pelletizing and sintering markets mostly in Brazil, and for the South African ferro-
alloy industry (45% of production in 2010/11).




Enquiries:


Petmin


Jan du Preez (CEO)


+27 11 706 1644


Media


Jonathon Rees


+27 76 185 1827


Sponsor and Corporate Advisor (JSE)


River Group


Andrew Lianos


+27 834 408 365


Nominated Adviser and Broker (AIM)


Macquarie Capital (Europe) Limited


Steve Baldwin


+44 20 3037 2362


Nicholas Harland


+44 20 3037 2369


 River Group
 Johannesburg
 17 July 2012

 	
  


Date: 17/07/2012 09:00:00 Supplied by www.sharenet.co.za                     
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