Thungela Resources will have to clear many hurdles if it is to mine its coal-rich asset on the border of Gauteng and Mpumalanga after its water use licence was rejected in the interests of protecting farming and water resources there.

The JSE-listed coal major spun off from Anglo American has mining rights to an area of about 3,400ha. The open-cast area Thungela wants to mine is about 900ha. Evidence to the Water Tribunal was that the proposed Palmietkuilen coal mine has the capacity to produce 2.4-million tonnes a year with its resources of 125-million tonnes and life of 53 years...

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