South African miner Wescoal has announced that its offer to acquire a 51 percent stake in the Pegasus project from HSTI 17 Proprietary Limited (HSTI) has been accepted.
The Pegasus project, considered to be the last high-grade coal deposit in the Witbank coalfields which are located in the South African province of Mpumalanga, was previously owned by BHP Billiton Energy Coal South Africa. The project concerns an undeveloped metallurgical and export quality thermal coal deposit with a measured resource of approximately 15 million mt and is situated 10 km from Witbank contiguous to the ExxaroInyanda colliery.
It is anticipated that Pegasus will come on stream during 2014 and will continue for eight to 10 years thereafter. The main product of the project will be a low-phosphorus coal that will be sold into the metallurgical industry.