page 1
page 2
page 3
page 4
page 5
page 6
page 7
page 8
page 9
page 10
page 11
page 12
page 13
page 14
page 15
page 16
page 17
page 18
page 19
page 20
page 21
page 22
page 23
page 24
page 25
page 26
page 27
page 28
page 29
page 30
page 31
page 32
page 33
page 34
page 35
page 36
page 37
page 38
page 39
page 40
page 41
page 42
page 43
page 44
page 45
page 46
page 47
page 48
page 49
page 50
page 51
page 52
page 53
page 54
page 55
page 56
page 57
page 58
page 59
page 60
page 61
page 62
page 63
page 64
page 65
page 66
page 67
page 68
page 69
page 70
page 71
page 72
page 73
page 74
page 75
page 76
page 77
page 78
page 79
page 80
page 81
page 82
page 83
page 84
page 85
page 86
page 87
page 88
page 89
page 90
page 91
page 92
page 93
page 94
page 95
page 96
page 97
page 98
page 99
page 100
page 101
page 102

Global warming and CO2 emissions are obviously a concern, but like Poland and China, South Africa thinks there is no realistic alternative at the moment. " In addition to what industry wants, there is a programe to electrify the most outlying villages," says Johnson, " so the demand is high. South Africa is blessed with a lot of sunshine, but when you are producing electricity for some of the more energy- intensive industrial processes we have, the capital and area of land needed for solar panels just becomes impracticable." Eskom, apparently, is doing its best, equipping new power stations with the most up- to- date technology available, but until the problem of CO2 emissions has been resolved, coal will continue to alarm environmentalists. Sekoko ( which incidentally is the traditional African name for a hard hat) is six months into its bankable feasibility study, which should be complete by the first quarter of 2010, coinciding nicely with the mining application can realistically be satisfied in the short term is by coal." The government's idea about electricity generation is that, apart from the state- owned Eskom, it wants to see 30 per cent of energy coming from private initiatives. Many of the existing Eskom plants are 40 years old or more and reaching retirement age. Alternatively, if the plant is still operational, the coal supply is running out. South Africa lacks the rail and road infrastructure to transport long distances the huge amount of coal consumed by a power station, so the policy is to build stations where the coal is. As such, Eskom has already completed one new power station in the Waterberg area and is in the process of completing a second. In total, there could be six new power stations by 2020, and Johnson is confident not only that Sekoko will get an operational mine up and running on one of its leases but that it will also get a contract to supply Eskom with something in the order of 20 million tonnes of coal a year. " There is an insatiable appetite for electricity, and the only way this can realistically be satisfied in the short term is by coal" 56 www. bus- ex. com July 09

at an estimated cost of $ 3.8 billion. Sekoko would provide the coal while its Chinese partner would provide the plant. Sekoko's other promising prospecting focus is on an area of Soutpansberg near the Zimbabwe border that has good- quality coking coal but so far only in thin seams. Johnson reckons it will be another couple of years before a decision is made on what to do there. In the meantime, there is also the prospect of mining iron ore. It's not particularly high quality, but there is an estimated 140 million tons of 40 per cent iron relatively close to the surface. A few test holes have been drilled, but further activity is on the back burner due to an internationally low interest in iron. The prospects for Sekoko and its many black African investors look promising, and members of the government will no doubt feel justified in having taken the controversial step it did seven years ago. - Editorial research by Robbie Hodgson currently going through its bureaucratic processes. One hundred bore holes have been sunk, suggesting that the coal is largely at the surface, which means an open- cast mine. However, the coal is not in seams but intermixed with rock. Thus, Johnson estimates the mine will require capital of around R1 billion ( plus or minus $ 150 million, depending on the exchange rate) to fund the excavators and 150- ton trucks needed to collect the coal- bearing rock and to build the washing plant needed to extract the coal from its accompanying shale. The current thinking within the business is that the extra cash will be sought by floating the company on the Johannesburg Stock Exchange. If the government continues with its plans to have independent power producers, Sekoko might be making another visit to the stock exchange for a vastly larger sum of money. Last year it was shortlisted as a potential IPP when it put forward a joint venture proposal with China Railway to build up to three 600- megawatt power stations Sekoko Resources July 09 www. bus- ex. com 57