Perth-based coal producer ZYL has announced intentions to prioritise the fast-tracking of development at its newly-acquired Mbila anthracite project ahead of its Kangwane anthracite project.
The decision aims to better service the domestic market and achieve earlier production and revenues.
The Mbila project in South Africa’s Kwa-Zulu Natal province has high domestic demand for its low-phosphorus, low-sulphur, high fixed-carbon product, as the overall South African demand for high-quality anthracite is currently outstripping supply.
Mbila can offer premium mine-gate pricing due to this high demand. Also, Mbila’s regulatory approval process and feasibility work are well advanced.
ZYL executive chairman Bevan Taratt said: “The level of interest in the product has exceeded the company’s expectations and this supports our decision to fast-track the Mbila project ahead of Kangwane.”
Two non-binding expressions of interest (EOIs) for offtake in respect of Mbila’s production have been signed this week. ZYL is currently seeking to formalise them.
The Kangwane project, located in the Mpumalanga province of South Africa, has been re-scheduled to focus on the longer-term growth in exports volumes.
