The Waterberg Coal Project Joint Venture Partners, through Sekoko Coal, have signed an agreement with the Lephalale Municipal Council to take over the management and operation of the Paarl waste water treatment facility for the purposes of supplying water to the Waterberg coal projects.

In its September 2014 Quarterly Activities Report the Company advised that the WCP joint venture partners had engaged with LMC in respect of taking over the management and operation responsibility for the Facility so as to ensure the long term availability of treated water for utilisation in the proposed project development and operations.

The agreement entitles, but does not oblige, Sekoko, on behalf of the WCP, to access treated water for 30 years with an option to renew the agreement for a further term.

The Facility has a treatment capacity of 10 million litres per day, or 3.64 million cubic metres per annum and will provide the WCP with sufficient water not only for its proposed Export Project development, but also Stage 1 of its proposed IPP development which is currently under technical and economic assessment.

Securing this water agreement is a very significant and necessary step towards the development of the WCP which the joint venture partners are targeting a project start up for the Export Project towards the end of Q4 of 2015.