Acacia Coal ( ASX:AJC )
Following the $3.7 million acquisition of its anthracite Project from mining giant Rio Tinto, and the release of a PFS ahead of schedule to the market, one ASX listed junior is now aiming to build serious value into its anthracite assets.
The company is in a good position to further its anthracite ambitions, being led by the management team that founded Riversdale Mining – later acquired for $3.9 Billion by Rio Tinto.
The company is looking to leverage a unique fundamental supply/demand profile in South Africa, where world leading industries such as mineral sands and ferrochrome are all dependent on high quality anthracite supply.
With a BFS slated for completion by the end of the year, which should include maiden reserves and a likely increase in resources, the company is looking to propel its AU$8 million micro-cap in a market niche saturated with opportunity.
This ASX company has already secured a non-binding off-take agreement with the world’s largest producer of ferrochrome to buy all of the project’s output.
Further discussions are also taking place with regards to binding offtake agreements and funding options.
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This company is currently at the beginning of developing a multi-million tonne project, and is on the cusp of generating early sales revenues later this year.
If all goes to plan, it looks like this company could take a stronghold in the domestic anthracite market, with an eye to global supply.
ASX Miner Snags Ultra High Grade Anthracite Project in South Africa
May 8, 2017
If you have never heard of ‘anthracite’ before, fret not. It’s just another name for the highest grade of coal possible – i.e. coal with carbon content in excess of 70%. Such coal is primarily used for high-end industrial purposes such as steelmaking and alloys.