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| |  Kendal CollieryOgies, Mpumalanga, South Africa Introduction The Kendal Mine is a moderate coal resource, largely minable by open cast methods and represents the first operating mine in Homeland's portfolio of assets. The Kendal Mine lies in the west-central region of the Witbank Coalfield, and began processing coal in July 2008. The mine is located approximately 100 kilometres east of Johannesburg, near the Kendal Power Station in Mpumalanga Province some six kilometres west of the town of Ogies. The elevation of the project is some 1,570 metres above mean sea level.  map of South Africa showing Johannesburg and Pretoria plus two coal terminals on the Indian Ocean  Location of Homeland properties in South Africa and showing the main rail line (in red) from Witbank to the Richard's Bay Coal Terminal. 
Kendal Colliery - Timeline
Geology The coal is present in the Ecca sediments of the Karoo Super Group, which reaches a width of approximately 150m in this area. The mineralized deposit for the purposes of this project include #4, upper and lower, #3 and #2 seams. The Project area is near the western extreme of the Witbank Coalfield wherein a general lithology would indicate 5 seams are present. Stratigraphic Section  stratigraphic log re Borehole KEN1322 To view the Independent Technical Report for the Kendal Project, please click here  (4.95 Mb) Location The Kendal property is situated approximately 2.5 km northeast of Eskom's Kendal Power station, to the southwest of the town of Ogies in the Mpumalanga Province of South Africa. The Kendal mine is bordered by four other coal mining projects: Klipspruit Colliery (BHP Billiton), Bankfontein Colliery(Shanduka), Kanyisa Colliery (NuCoal) and Goedgevonden Colliery (Xstrata). Infrastructure The Kendal mining property is situated 0.5 km from a secondary tar road called the R555 between Ogies and Kendal, 8km from the N12 Highway between Witbank and Johannesburg , less than 1 km from a rail line and 2.5 km from Eskom's Kendal Power Station. Rail, road, power and water are all immediately accessible to the Kendal property.  Mining Method The majority of the Kendal coal resource is accessible via opencast (open pit) mining with a small portion which would be accessible via an underground operation.
Kendal Coal Sales With the processing facility on site, the Kendal Colliery is well situated in close proximity to South Africa's large industrial base in Johannesburg. Approximately 70% of the saleable coal from Kendal will be sold into the lucrative domestic industrial markets with the remainder, largely a run-of-mine product, feeding the growing domestic electrical markets. Kendal Plant is designed to process approximately 4,000 tonnes per day (120,000 tonnes per month), producing approximately 76,000 tonnes per month of saleable coal. In September 2008, the first contracts were signed for sale of the Kendal washed coal product into the domestic market. Approximately 500,000 tonnes of coal was contracted at this time at an average price of approximately 700 Rand (US$88 at exchange rates at the time of signing) for delivery between October 1, 2009 and September 30, 2009. All coal sales at Kendal are FOT (Free on Truck) allowing purchasers to arrange and pay for their own transportation of the coal from Kendal's mine gate to the end destination. The Kendal Community When the Kendal mine and plant were in the planning stages, Homeland Energy contacted residents living on the land covered by the mining lease and notified them that the company would relocate them to new homes a very short distance from their current locations. Homeland worked with a local contractor to construct 16 new brick homes for these residents. Several of the families moved to their new homes in September 2008 with others to follow as mining progresses toward the areas where others are living.
Kendal Colliery Grand Opening Homeland Energy Group Ltd and Homeland Mining & Energy, South Africa held grand opening ceremonies for the Kendal Colliery on Wednesday October 1, 2008. More than 200 in attendance included Homeland employees, government officials, contractors, local residents and Homeland's business partners. Deputy Director General of the South Africa Department of Minerals and Energy, Ms. Futhi Zikalala spoke on behalf of the Minister of Mines & Energy, Ms. Buyelwa Sonjica. To view the October 3, 2008 news release: Homeland Energy Holds Official Ceremonies for Kendal Mine Opening, South Africa click here Technical Report(s) To view the Independent Technical Report for the Kendal Project, please click here. |
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© 2008 Homeland Energy Corp. | Disclaimer | Glossary |
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