Mining companies´ onslaught on the coal-rich Soutpansberg continues with the news of yet another mining company showing interest.

Universal Coal, an emerging thermal coal production and development company, is currently busy with exploration drilling in the Soutpansberg Coal Basin. Universal is also based in Australia, with the aim of becoming a mid-tier thermal and coking coal mining company with various “coking coal assets under licence with large tonnage potential.”

Both their coking coal projects, the Bernice and Somerville projects, are situated in the “heart of South Africa’s coal field”, just north of the Soutpansberg mountain range. However, until recently, Universal’s drilling work, it would seem, was done behind closed doors, with the Soutpansberg District Agricultural Union (SDAU) voicing their concern about this alleged secretive conduct this week.

According to SDAU chairperson Mr Stephen Hoffman, the environmental management plan (EMP), a copy of the prospecting license and proof that consultation took place with the land owners, were requested from Universal on more than one occasion. After their first letter, Webber Wentzel Attorneys answered on behalf of Universal, asking the SDAU “which party/parties they represent and on what basis they believe the SDAU is entitled to the information.” This was despite the fact that the SDAU brought it to Universal’s attention that the SDAU acted on behalf of their members and that, in terms of the Mineral, Petroleum Resources Development Act, this made them an affected party.

In response, Universal’s executive chairperson, Mr Tony Harwood, said people should not get into a state of panic. According to Harwood, the affected and interested parties will be consulted after Universal is done with its exploratory drilling phase.

“After we’ve done with the prospecting, a feasibility study will follow and only then will an EMP be compiled and be available,” said Harwood. Universal first has to determine whether a mine would make “economic sense.”

The economic prospects, however, look good, with Harwood expressing his delight over the first phase of the drilling program at the Bernice project during an investors meeting held in Sydney last Thursday. “Results of the program have exceeded the previous resource estimates substantially and will allow the company to commence a second phase of drilling and a scoping study in the fourth quarter of 2011,” Harwood said.

This first phase, says Harwood, included a 52-hole drill program on the Bernice project. These properties are situated to the west and north-west of Waterpoort and north-west of Mopanie and stretch over 17 farms. According to Harwood, Universal obtained ownership of these projects as part of an earn-in agreement with a “local black economic empowerment group.”

Universal’s second project, Somerville, is located near the northern border of Botswana and includes the farms Ratho 1, Montrow 6, Pontdrift 12, Parma 40, Somerville 9 and Princess Royal 10. According to their competent persons report, completed in 2010, some of the farms in the Somerville project are “located within the Vhembe Game Reserve.” This, according to the mine, is not a major problem, because the reserve is not proclaimed as such by the Provincial Department of Economic Development, Environment and Tourism.

Universal is excited about Bernice’s estimated coking coal resource of more than one-billion tons. If a mining licence is granted, Universal has proposed open cast mining to extract the coal.