FOR IMMEDIATE RELEASE
16 May 2014
BISICHI MINING PLC
INTERIM MANAGEMENT STATEMENT
Bisichi Mining Plc (“Bisichi” or “Company”), the UK mining company with direct
coal mining operations in South Africa, provides the following interim update
on its operations:
At the end of last year Black Wattle, our South African coal mining subsidiary,
began relocating machinery to two of our profitable production pits. During the
course of 2014, Black Wattle’s plan is to increase production from these two
areas as well as begin the development of the new reserve at Blue Nightingale.
Although this planned increase in production from these two areas has been
adversely affected by the unusually heavy rainfall experienced in the first
quarter of 2014, we continue to expect the mine to return to acceptable levels
of profitability by the second half of 2014.
The timing of the development of the new reserve at Blue Nightingale continues
as planned. The new reserve consists of approximately 2.3 million tonnes of
coal which can be sold either directly to local power utilities or transported
to Black Wattle where it will be washed and sold into our existing domestic and
export markets. We currently expect to start mining this reserve in the second
half of 2014.
Despite the international coal markets continuing to be affected by weak
international coal prices, the physical demand for our coal has remained, and
continues to remain, strong in both the domestic and export markets.
Nevertheless depressed coal prices may continue for the whole of 2014.
With new reserves to develop and strong demand for our coal we remain highly
confident on the prospects of our coal mining activities in South Africa.
Finally, the Company’s UK retail property portfolio, which is actively managed
by London & Associated Properties PLC, continues to perform satisfactorily.
For further information, please call:
Bisichi Mining PLC 020 7415 5030