aviva attracts interest in mmamantswe

Aviva attracts interest in Mmamantswe

Written by OARABILE MOSIKARE
Wednesday, 04 May 2011 00:00

FRANCISTOWN: A resource development company listed on the Australian Stock Exchange (ASX: AVA) and the Botswana Stock Exchange (BSE), Aviva Corporation Limited says it is experiencing considerable interest in Mmamantswe, following a marked increase in the procurement of coal and/or coal projects in Southern Africa by Indian companies


Aviva is working on identifying the greatest value opportunities for shareholders from the undervalued Mmamantswe Project, against this backdrop of increasing Indian demand for thermal coal. The company is currently reviewing the project scope, and costing the completion of environmental approvals for the project. It says the most recent scoping study carried out at Aviva's 895Mt Mmamantswe Coal Project has confirmed the project could yield two products streams - 200Mt of export grade thermal coal and an additional 100-150Mt of domestic power coal capable of supporting a 300MW domestic power station.

"With virtually no change to the 10Mtpa run of mine (ROM), mine plan prepared by SRK in 2009, Mmamantswe could produce 3Mtpa of export thermal coal and 1-1.5Mtpa of domestic power coal with sufficient reserves for over 60 years. The Company retains the flexibility to lift production, thereby bringing forward the projects cash flows," says Aviva.

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