Xceed Resources has been granted environmental approval for the development of Moabsvelden thermal coal project by the Mpumalanga Provincial Government in South Africa.
The approval was given under the National Environmental Management Act and the Environmental Impact Assessment Regulations.
The environmental approval was the second of three major licenses required to develop the project, with the first, which includes the mining right, already secured.
The third and final license, the integrated water usage license, is expected to be granted shortly, with Xceed stating that discussions with the Department of Water Affairs were at an advanced stage.
Located in the Witbank coal field, the Moabsvelden project is anticipated to have a mine life in excess of 14 years.
The project has a joint ore reserves committee compliant resource of 66 million tonnes and a reserve of 43.8 million tonnes.
After completion, the project is expected to deliver around three million tonnes run-of-mine per year.
Xceed Resources is reported to be in negotiations with South Africa-based Eskom with respect to a proposed coal supply agreement required for the project.
Australia-based Xceed Resources is engaged in the acquisition of mineral projects in Southern Africa and the company primarily focuses on the development of coal projects situated within South African coal fields.
Xceed Resource currently has three projects in South Africa, including the Moabsvelden, Roodepoort and Bankfontein projects, which have a combined total resource of 114.4 million tonnes.
Earlier in 2013, South African coal miner Keaton Energy made a firm offer to acquire Xceed Resource in an all-cash deal as part of a strategy to position itself as a major coal producer.
Image: Moabsvelden open-pit thermal coal project is expected to deliver around three-million tonnes run-of-mine per year. Photo: Courtesy of FreeDigitalPhotos.net.