TSX- and JSE-listed Buffalo Corporation indirect subsidiary Zinoju Coal has received environmental authorisation for its Balgray colliery refurbishment project, in South Africa’s KwaZulu-Natal province.
Buffalo says in a statement issued on August 6 that the authorisation brings the project one step closer to successful execution. The project is the highest priority one in Buffalo’s current pipeline and will extend the company’s operations at Aviemore by at least six years.
Buffalo is a South African coal producer, holding a majority interest in two operating mines through its 100% interest in Buffalo Coal Dundee, which, in turn, has a 70% interest in Zinoju.
Zinoju owns the Magdalena bituminous mine and the Aviemore anthracite mine in KwaZulu-Natal.
The subsidiary intends to undertake refurbishment around the Aviemore mine, to establish another underground coal mine, which lies on the Gus Coal Seam. Buffalo explains that the seam has an estimated anthracite coal reserve of 2.6-million tonnes and the mine will have a production rate of about 45 000 t a month.
Without the refurbishment undertaking, Aviemore’s resources would have been depleted by mid-2022.
Buffalo expects the Balgray project’s construction to take 11 months.