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March 2015 Quarterly Report
The Waterberg Coal Company Limited
(Incorporated in Australia)
(Registration number ABN 64 065 480 453)
ASX: WCC | JSE: WCC | ISIN: AU000000WCC9
(“WCC” or “the Company”)
March 2015 Quarterly Activities Report
The Waterberg Coal Project (WCP)
The Waterberg Coal Company Limited (WCC) is a participant in the Waterberg Coal Project
(WCP) joint venture, situated in the Limpopo Province, South Africa. The Project currently
has identified coal resources of 3.883 billion tonnes1 of coal contained within the granted
mining rights; of which 2.070 Billion tonnes are contained within the measured category1.
The WCP Joint venture entered into a Memorandum of Understanding with Eskom Holdings
in March 2012 for the supply and delivery of 10 million tonnes per annum (mtpa) of coal
from the Project.
In May 2012 the mineral consultancy, SRK Consulting of Johannesburg, South Africa was
commissioned by the WCP joint venture partners to undertake a technical and economic
feasibility study for the development of the Eskom Project (Eskom Project). In October
2013, SRK Consulting delivered to the project partners the results of the Definitive feasibility
study (DFS).
Project Optimisation Study – The Eskom Project
With the current focus on the Export Project, work on the Eskom project in terms of
optimisation and on-going value engineering continues to be on hold until further direction is
received from Eskom in terms of advancing the status of negotiations with respect to the
Coal Supply Agreement.
The Export Project - Definitive Feasibility Study
Work has continued on a DFS for the Export Project, to be located in the south of the WCP
area. The Export Project anticipates the build up to 4 million tonnes per annum (in saleable
product) over a six year period. First coal product is forecast, subject to financing
arrangements, for the 4th quarter 2016.
Access to Water
As reported on 31 October 2014, WCP Partners have entered into a Memorandum of
Understanding with the Lephalale Municipal Council with respect to the Paarl Waste Water
Treatment Plant whereby the WCP Partners will take over the management and operation of
the water treatment facility for the purpose of supplying water to the WCP.
During the quarter the Lephalale Municipal Council ratified the Memorandum of
Understanding previously entered into by the parties in a council meeting in January 2015.
The Paarl Water Treatment plant has a treatment capacity of 10 million litres per day, or 3.64
million cubic metres per annum. Sufficient water is available for the proposed project
development.
Port capacity
As previously advised the WCP Partners entered discussions with RBT Grindrod Terminals
regarding port allocation at the Richards Bay Terminal (RBGT) for confirmation of their
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capacity for the handling and loading of Export coal product. Negotiations are proceeding on
the final volumes, timeline and contracted price. A formal contract will be executed once final
arrangements with offtaking parties have been completed with confirmed volumes for
offtakes for the first 5 years.
Project funding – The Export Project
As previously advised, the WCP Partners have commissioned a DFS for a stand-alone
Export Project. Accruing from the preliminary results of the DFS, the WCP Partners are in
discussions with certain banks with respect to funding arrangements for the proposed
development. Pursuant to the discussions to date with such parties, The Snowden Group
has been commissioned as Independent Technical Experts to produce a due diligence
report for the purposes of project funding.
South Australian Tenements
The Company holds 2 exploration tenements in the Gawler Craton of South Australia which
are highly prospective for gold and copper-gold mineralisation. . The Gawler Craton is host
to large copper-gold deposits such as Olympic Dam and Prominent Hill to the east, and gold
deposits such as Challenger, Tarcoola and Tunkillia in the west.
During the quarter, the Company continued to compile and validate exploration data relating
to the 2 tenements and is assessing the prospectively of targets within the license holdings.
The Company has designed work programmes to test these targets however these work
programmes have not been carried out to date. The Company is considering its strategy with
regards to these tenements.
Corporate
On 20 January 2015 WCC’s 45.88% subsidiary, FSE announced to the market the receipt of
AU$3.1million (after costs) being tranche 1 of the drawdown pursuant to the convertible note
facility. These funds have been allocated by FSE in the main to project costs and to provide
working capital.
On 16 March 2015 the Company advised the market that the funding facility made available
by the Standard Bank of South Africa (SBSA) was due for repayment on 9 April 2015. At that
time the Company advised the market that it was in discussions with SBSA with respect to
the refinancing of the SBSA facility. At the date of this report these discussions are ongoing
On 16 March 2015 the Company released its half year financial report.
On 17 March 2015 the Company entered into a trading halt advising the market of group re-
financing discussions. Subsequently, the Company then entered into a voluntary suspension
of its shares on 19 March 2015 following the trading halt and as at the date of this report
remains in voluntary suspension.
30 April 2015
Stephen Miller
Executive Director and CEO
The Waterberg Coal Company Limited
JSE Sponsor:
The Standard Bank of South Africa Limited
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ASX Release
30 April 2015
THE WATERBERG COAL COMPANY LIMITED
ABN 64 065 480 453
Registered office:
Level 2, 1 Walker Avenue West Perth, Western Australia 6005
Australia
Tel:+61 8 9485 0888
Fax: +61 8 9485 0077
South African office:
Level 1, The Place,
1 Sandton Dr
Sandton, 2146
South Africa
Tel: +27 10 594 2240
Fax: +27 10 594 2253
Contact:
Mr Stephen Miller
Executive Director/CEO
Or
Investor relations
in South Africa:
Lawrie Mackintosh
E-mail:
info@waterbergcoal.net
Directors:
Dr Mathews Phosa (Chairman),
Stephen Miller
(Executive Director and CEO)
Lee Boyd
(Director and Company Secretary)
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Table 1 – Coal Resource on all six Waterberg Coal Project Properties under both
Prospecting Permit and Mining Right
CV
Coal Ash IM % Vol % TS %
Resource Classification (Mj/kg)
Resource¹(Mt) % (ad) (ad) (ad) (ad)
(ad)
Measured 2070.3 57.9 2.2 17.6 10.51 0.96
Indicated 856.3 59.4 2.3 17.2 9.96 1.00
Inferred 956.7 58.9 2.2 17.5 10.26 1.03
Total Resources 3883.3 58.5 2.2 17.5 10.33 0.99
Coal Resource¹ based on minimum thickness cut-off of 0,5m
Note 1: Competent Person Statement
Gemecs (Pty) Limited was commissioned by the Waterberg Coal Company "WCC", to undertake an Updated Independent
Persons Geological Report for the Sekoko Waterberg Coal Project.
The Coal Resources were estimated in accordance with the South African code for the Reporting of Exploration Results,
Mineral Resources and Mineral Reserves (“SAMREC Code”), Australasian Code for Reporting of Exploration Results. Mineral
Resources and Ore Reserves (“the JORC Code”) and South African National Standard (SANS 10320:2004) guidelines.
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on
information compiled by Mr Coenraad D van Niekerk, Pr.Sci.Nat (Reg. No 400066/98), M.Sc Hons (Geology), MDP, an
employee of Gemecs (Pty) Limited, who is a Fellow of the Geological Society of South Africa. Mr Niekerk is a mining
geologist with 38 years’ experience in the mining industry, sufficient experience relevant to the style of mineralisation and
type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as
defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves. Mr Niekerk consents to the inclusion in the announcement of the matters based on this information in the form
and context in which it appears.
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