Xceed Resources, an Australian coal project developer, has received environmental approval from the Mpumalanga Provincial Government in South Africa for the development of the Moabsvelden coal mining project. The environmental approval is the second of three major licenses required to develop the Moabsvelden project. The first, the Mining Right, has already been received. The Company expects that the third and last major license, the Integrated Water Usage License, will be granted in due course. Discussions with the Department of Water Affairs in regard to this final license are at an advanced stage.
The Moabsvelden project is located in the western portion of the Witbank coal field which historically is the most important coal field in South Africa. In January 2012, the project was estimated to hold 30.7 Mt of proved reserves and 13.2 Mt of probable reserves (total of 43.9 Mt). Gross in situ resources are estimated at 66.1 Mt.