Wescoal, the coal logistics, buying and trading company, earlier today released a market update in which the company indicated that it would also transfer its listing to the Main Board of the JSE . André Bojé, Chief Executive Officer of Wescoal indicated that, “The move will position Wescoal alongside comparable coal mining companies and raise the profile of Wescoal as a reliable supplier of coal to the local and export market.”

In October 2009 Khanyisa Colliery (“Khanyisa”) was incorporated into Wescoal. By December 2009 the first opencast pit was operational and by the
end of March 2010 400,000 tons of run of mine (“ROM”) will have been extracted. Operations have commenced in the second opencast pit and
80,000 tons ROM will be extracted by the end of March 2010.

André Bojé, is comfortable that, “Together, both operations will comfortably produce our stated objective of 1.2 million tons per year. Wescoal will also continue to explore a number of additional opportunities that have arisen out of the pending expiry of rights issued in 2004 and 2005 to increase production potential.”

Bojé goes on to say that, “A three year supply contract, in a joint venture with a BEE company, has been secured to provide Eskom with coal product and the first order of 100,000 tons will be completed by the end of March 2010.”

Since November 2009, when Wescoal last reported to the market, the international coal market has strengthened with API#4 prices holding firm at
the $80+ per ton level, primarily driven by the extremely cold winter in the northern hemisphere which depleted coal stock piles. Bojé concludes by saying that, “Despite the depletion of stock, the outlook for the export of coal remains constrained by logistical problems surrounding exports. In South Africa surplus stocks are still evident and we believe that inland coal prices will remain static.”

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