MBUYELO ACQUIRES FIRST MINING RIGHT

“True empowerment finds its meaning in participation.” These were the exact words of the group CEO of Mbuyelo Investment holdings Mr. R.O. Siweya after receiving the exciting news that the department of Minerals and Energy has awarded the first mining right to the group, which will see Mbuyelo taking part in its first mining operations.

Whilst acknowledging the current global economic meltdown, the group CEO was cautious but yet confident that the granting of this coal mining is a historical milestone in the development of the company. The granted mining right lies in portions 3.5 and 13 of the farm Vlakvarkfontein 213IR, in the Delmas area of the Mpulanga province of South Africa. According to Mr. Siweya, the has a potential of producing a hundered thousand Metric Tons of Eskom grade coal on a monthly basis, with a life expectancy of between five to eight years depending on the volumes produced. “Notwithstanding the economic crisis, coal remains the primary source of energy, hence the sustainability of an operation of this nature as a form of our integration into the main stream is a more than achievement for Mbuyelo as an operationally empowered BEE company.” said Mr. Siweya.

Mbuyelo’s technical team along with the partners have under-pinned a program to commence with operations within the next four months. “It is finally pike and shovel time for Mbuyelo.” said the excited group CEO.

IN THE LOOP AT MBUYELO GROUP

Driven by an unshakable gusto for life, an Mbuyelo group subsidiary submits a mining right application for a worthy coal reserve.

This mining right application also lies in the Mpumalanga region of South Africa in the Magisterial district of ERMELO on portion 4 of the farm LEEUWENBERG 137 IT, certain portions of the farm ROODEWAAL 270 IT; portions of the farm HOLBANK 265 IT; the farm VLAKFONTEIN 266 IT(-excluding portions 1 and 9); the farm VLAKFONTEIN 269 IT; certain portions of the farm MOOIPLAATS 290 IT; the farm WITPUNT 267 IT(-excluding portions 30 and 36); TRANSUTU 257 IT, as well as on portions of the farm JANHENDRIKSFONTEIN 263 IT. “The coal to be mined carries a calorific value of twenty-four (24CV), which crowns it an extremely high quality coal - good enough to be sold on the export market,” relayed Mr. R.O Siweya, the group CEO. “We have satisfied all the requirements for an Environmental Management Plan (EMP),” which as it turns out is the last phase of the mining right application, “… and we wait eagerly- yet positively, for a response from the Department of Minerals and Energy regarding the above-mentioned right.” It is merely a matter of months before the Group will know its fate. However, according to Mr. Siweya, the group’s subsidiary has begun its bulk-sampling obligations.

It was just over a decade ago when the Camden Power Station was shut-down in 1981, today its lifespan is estimated at approximately 10 years- all of which it is proposed to supply an estimated 2 400 000 tonnes of coal per year.

THE EARLY BIRD GETS THE WORM AS MBUYELO SECURES MINING LICENSE ON ELOFF COAL PROJECT

“As you sow, so shall you reap” and Mbuyelo meaning “rewards” have certainly secured their Mining License on the Eloff Coal Project as the Company continues to make great strides .
“Individual commitment to a group effort- that’s what makes a team work, a company work, a society work!” exclaimed Mr. Siweya, C.E.O of Mbuyelo Investment Holdings. He added that at a potential of 380 000-500 000 tonnes per month run-of-mine (ROM), this robust project has the inherent capacity for an Independent Power Plant (I.P.P) as the country’s demand for energy increases . Demand for coal has grown at an average rate of five percent over the last five years. With coal prices likely to remain well below those of gas and oil, the use of coal for electricity generation will continue to grow. The Eloff Reserve is located in Witbank Coalfield in the Mpumalanga province, with variations of coal as well as Eskom-type. Witbank coalfield is by far the most important source of South Africa’s mined coal at present. Mbuyelo owns 50% of Eloff and is a B.E.E partner to a Canadian Company listed on the Toronto Stock Exchange (TSX). According to the C.E.O, highly anticipated mining operations are scheduled to begin in approximately six months.

With South Africa’s energy consumption from coal at approximately 75 percent, Mbuyelo embarks on an auspicious future joining the ranks of major contributors in the Mining industry.