ava significant coal producer

Aviva Corporation could become significant coal producer in Botswana

Monday, February 07, 2011 by John Phillips

Aviva Corporation (ASX: AVA) has the potential to produce 3 million tonnes per annum of export thermal coal and 1-1.5Mtpa of domestic power coal with sufficient reserves for over 60 years from its Mmamantswe project in Botswana.

The study by A&B Mylec Pty Ltd demonstrates that the 895Mt Mmamantswe project could yield two products streams, 200 million tonnes of export grade thermal coal production at its Mmamantswe project and an additional 100-150Mt of domestic power coal capable of supporting a 300MW domestic power station.

These results were well above the expectations of Aviva.

The study said that a two stage processing of the Mmamantswe deposit is a viable option to deliver both export grade 20-22MJ/kg (ad) and domestic grade 13.5-16.5GJ/t (ad) thermal products.

The A&B Mylec study was based on the 20 year preliminary mine layout prepared by SRK Consulting as part of the Mmmantaswe Coal Project Scoping Study completed in 2009.

Lindsay Reed, chief executive officer, said "The results were considerably above our expectations and were very positive for the project in the current energy fuel market.

'With virtually no change to the 10Mtpa run of mine (ROM), mine plan prepared by SRK, Mmamantswe could produce 3Mtpa of export thermal coal and 1-1.5Mtpa of domestic power coal with sufficient reserves for over 60 years.'

The major benefit for Aviva is the flexibility to lift production, bringing forward the projects cash flows.

Mmamantswe is located on the Botswana's South Africa border, 70 kilometres north of Gabarone.

The project has a very low stripping ratio, relatively low sulfur, a defined water resource and access to transmission.At current market valuation of less than $32 million, Aviva's coal project, gold and base metals joint venture with Lonmin Plc and Coolimba project in Western Australia are modestly valued at present.


PS: source proactive investors Also Mrgann the source for the new top 20 shareholder list is from proactive sorry i should have mentioned