Miranda holds an 88% interest in Sesikhona. The remaining 12% is held by the local Kliprand community, who are actively involved in the project and are represented on the board of Sesikhona. The colliery, situated near Dannhauser, Kwa Zulu Natal, consists of four contiguous farms and covers 884 hectares.

In terms of the JV agreement with Sesikhona, Ihlosi have paid an initial fee of R1miilion and will pay an additional R5m on commencement of mining operations.

Sesikhona will thereafter earn R50 per ton of coal mined over the 20 year life-time of the project. Ihlosi have warranted a minimum of 30 000 tons per month, building up to an average of 50 000 tons per month.

Alan Thompson commented, “We are very excited with the acceptance of this permit as it stands to generate about 22 million tonnes of high grade coal and anthracite of which at least 40% can be mined using open cast mining.  The mines’ life-time is estimated to be about 20 years which equates to about R2.5 million per month in net annuity income for Miranda.

This acceptance is an encouraging step in the mining right application and we are confident that mining operations will commence towards the end of the second quarter”  

Preliminary drilling results revealed the occurrence of two seams, the top and bottom, with an average depth of 20m and 29m respectively. The top seam has an average thickness of 1.83m and the bottom seam 0.98m.

The Scoping Report, which represents the first phase of the conversion to a mining right, has also been submitted and accepted by the DME. The company has engaged the services of DG Environmental Consultants, environmental specialists based in Dundee, to prepare the Environmental Impact Assessment (“EIA”) as required by the MPRDA (Minerals and Petroleum Resources Development Act). Progress on the EIA is advanced and will be submitted to the DME and other Interested and Affected Parties within the prescribed time limit of 90 days.