Miranda today announces that the mining license on the group’s Sesikhona Kliprand Colliery (Pty) Ltd (“Sesikhona”) project has been executed with the Department of Minerals and Energy (“DME”).

Ron Nel, CEO of Miranda commented, “As the group’s first coal mining license, the execution of the Sesikhona mining license means that this project is the first in our coal pipeline in KZN to move into the production phase”.

Miranda is already well-advanced in its site establishment, which includes the workshops, offices, ablutions and settling ponds. It has also embarked on a number of social and community projects, such as the establishment of a soccer field and the relocation of certain communal facilities.

The board is furthermore pleased to announce that it has, by mutual agreement, negotiated a cancellation of its joint venture mining contract with Ihlosi Project Mining CC (“Ihlosi”). Ihlosi has paid a non-refundable R1 million deposit in terms of this agreement. Ihlosi initially also warranted a minimum production rate of 30,000 tons for which it would have paid Miranda R50 per ton of coal mined. Miranda will now be in a position to become more directly involved in and to derive greater potential benefit from the mining of the Sesikhona deposit.

The Ihlosi JV agreement was entered into at an early stage of the development of the group’s business model, and at a time when the group’s emphasis was on mitigating operational mining risk. The cancellation of the Ihlosi agreement now leaves Miranda Coal free to retain active involvement in all of its projects through to the full-scale mining phase. This may be done either by acquiring in-house the necessary technical expertise or by contracting it in from specialist mining and marketing service providers.

Nel noted, “We have communicated our intention before to maintain full managerial and operational involvement with the development of Miranda Coal. The cancellation of the Ihlosi agreement presents us with the opportunity to do just that as well as benefit from the financial upside”.

Given that Miranda Coal has now taken on full operational control over Sesikhona, it has appointed a project manager and is moving forward with the project plan on a number of fronts. Miranda will complete a full site establishment and infrastructure requirements, implement all initial aspects of the social and labour plan as well as asses the heritage impact. Lastly, Miranda will finalise arrangements with the earth-moving and mining subcontractors.

The revised project plan allows for open cast mining to commence within 60 days. Sesikhona will stockpile until the washing plant is commissioned.

ISSUED BY: FDBeachhead
Louise Brugman;
011 214 2415/ 083 504 1186/ louise.brugman@fd.com

Senzi Dlamini
011 214 2420 / 073 494 0030 / senzi.dlamini@fd.com
ON BEHALF OF: Miranda Minerals

CEO: Ron Nel 012 665 4200

Notes to editors
Sesikhona
Sesikhona is located approximately 11 km’s from Dannhauser in KZN and consists of four contiguous farms covering an area of 864 ha. As previously announced, a total resource of 22 million tons has been identified of which 5.4 million tons is at measured status. The deposit consists of high grade anthracite and approximately 40% is estimated to be mineable using open-cast techniques. Miranda holds an interest of 73% in the Sesikhona project through its wholly-owned subsidiary Miranda Coal, the remainder being held by empowerment partners and the Kliprand Community Trust.