The Waterberg Coal Joint Venture Partners (WCJVP) have completed feasibility study into the opencast mining operation development aimed to produce 10 million tons of coal per annum for an initial term of 30 years for Eskom.

The study has been conducted as part of memorandum of understanding (MOU) with Eskom for the proposed coal supply agreement (CSA) while WCJVP is updating the study.

As part of CSA, Eskom will complete a burn test on a bulk sample of approximately 200,000 tons of coal, which is expected to be conducted over the course of the next 30 days.

Additionally, Waterberg Coal signed a letter of intent with Ardbel for engineering and procurement and construction contractor for the proposed development of the Waterberg Coal project.

Ardbel is a joint venture between ELB engineering services and the DRA group, which collectively are the pre-eminent materials handling and engineering services provider to the mining sector in South Africa.