/ 25 April 2008

Significant coal discovery made in Mozambique

Central African Mining and Exploration (Camec), which owns interests in fluorspar and PGM projects in South Africa, on Friday said it had made a significant coal discovery in Mozambique.

The company, which is listed in the United Kingdom, said in a statement that the discovery was made during the ongoing systematic exploration programme covering the 21 licence areas in the Tete province.

Camec estimated that the discovery could contain up to 868-million tonnes of potentially mineable on-site coal with an inferred resource of 188-million tonnes.

Further drilling along strike is expected to substantially increase this resource, the company said.

“We are greatly encouraged by the initial results of the exploration programme,” said Camec chief executive Andrew Groves.

“With China’s demand for imported coal alone having tripled since 2003, the growing global demand for coal represents a significant opportunity for Camec, given these initial results and our other coal assets in South Africa,” Groves said.

In South Africa, Camec holds prospecting rights for coal more than 15 farms totalling more than 20 500ha. — I-Net Bridge