Homeland Energy picks mining contractor

South Africa-focused Homeland Energy Group (HEG-T, HMDEF-O) has awarded Moolman Mining a 3-year initial mining contract for its 74%-owned Kendal coal mine.

The open-pit mine is located 100 km east of Johannesburg, in South Africa’s Mpumalanga province.

“We are looking forward to working in partnership with Moolman at the Kendal coal mine,” said Mike Nell, Homeland Energy’s chief operating officer. “Moolman has proven to be exceptionally professional in our negotiations to date and has an impeccable reputation for contract mining in southern Africa.”

The standard mining contract will include the mining of a minimum of 150,000 run-of-mine tonnes of coal per month. Moolman will also be in charge of removing all material above the coal seams, intermediate coal partings between significant seams and rehabilitation of the mined-out area.

Total costs at the mine are projected at US$12-14 per saleable tonne.

Moolman Mining is an operating group within the Aveng Group and has been open-pit mining since the late 1970s. The company has 12 projects in six African countries.

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