[miningmx.com] — A NEW early stage player in the Waterberg coalfields is pursuing a JSE listing, giving investors another option among a growing number of juniors looking to make their mark in the area.
Namane Energy CEO Jan Britz told Miningmx on Tuesday that the group would seek to list in August, looking to raise R150m for the completion of its bank feasibility study and related specialist studies.
The group has five properties in the Waterberg – among the assets of fellow coal juniors Sekoko Resources and Resource Generation (ResGen) – three of which contain more than 1.4bn tonnes of mineable reserves and serve as the location of its main project, the Temo Coal project.
Britz, a former manager at Exxaro, said the group would pursue both local and foreign off-take agreements as a basis to get the business going, but that Namane eventually would like to distinguish itself as a player in the energy generation sector, as well as seeking downstream beneficiation opportunities.
“We’re already far down the road in bringing a strategic partner on board for the development of downstreams,’ said Britz. Unfazed by the apparent restrictions posed by government’s latest version of the integrated resource plan on new coal generated power projects, Britz said Eskom would have to make decisions soon on how it would cater for future energy supply shortages.
As is the case with other coal miners, Namane would also have to find a solution to the transport bottlenecks posed by South Africa’s flagging railway infrastructure if it wishes to get its material to the export markets of India and China.
Transnet Freight Rail is hoping to get coal transport capacity close to 70 million tonnes (mt) per year or more, but it is still way below the 91 mt/year capacity of Richards Bay Coal Terminal (RBCT). Earlier this month it said its annualised coal exports for the year to date totalled about 54 mt.
“To unlock the value of the Waterberg, players in the area would have to look at synergies for both water and rail,’ said Britz, adding that RBCT entitlement would go a long way towards opening up allocation on the railway line. He is also said the proposed Trans-Kalahari railway line as well as projects planned for Mozambique would provide long-term alternatives.
Namane’s application for mining rights was accepted by the department of mineral resources in March. Its prefeasibility study would be completed at the time of listing.
Neighbouring ResGen earlier in June secured a $16bn coal supply agreement with India’s Integrated Coal Mining for the supply of about 139 mt of coal.
Sekoko – major shareholder in Firestone Energy – is exploring opportunities with India’s Jindal for coal supply and power generation. It has also secured an off-take supply deal with Eskom to supply contract coal from April 2012.
“We’re a bit behind the rest, but when we’ve managed to catch up many of the uncertainties would hopefully be dealt with,’ said Britz, referring to transport logistics and Eskom’s independent power supply policy.
He said Namane’s biggest priorities for now would be to complete the listing on time, announcing the strategic partner and securing RBCT entitlement.
Namane’s parent company, Namane Resources, was founded in 2006 by current chairperson Anna Mokgokong and group CEO Joe Madungandaba. It has a portfolio that includes coal, diamonds, base metals and platinum, with several prospecting rights in South Africa and Botswana.
