CEF (Pty) Ltd announced that it had formed a new mining company, African Exploration Mining and Finance Corporation, in an effort to venture into mining.

The company has been given ministerial approval to operate by the minerals and energy department in April.
 
CE Sizwe Madondo said the new company had prospecting rights in Witbank, Wakkerstroom and Bethal.
 
“We are in the process of applying for a mining licence for the first quarter of next year. The company is already operational after receiving first prospective rights last year in December,” Madondo said.
 
The CEF, which is a 100% owner of African Exploration Mining has given the company R180m for the next three years for exploration.
 
Madondo said the company has been drilling in Bethal and was in the process of finalising a feasibility report, which is expected to reveal whether there are enough deposits of torbanite - a form of coal that can be heated without oxygen at 600 degrees Celsius synthetic crude.
 
“African Exploration is also in discussions with other mining companies especially black economic empowerment groups, to form joint ventures. Exploration is expensive and a risky business and does not guarantee success, hence we are in discussions for joint ventures,” Madondo said.
 
Discussions to have uranium rights in Northern Cape transferred from another state-owned entity were almost complete, he said, as this was a natural home for such rights.

Asked about the staff complement of the company, Madondo said the aim was not to turn the company into a fully functional mining company but rather to use sub-contractors in mining.
 
“This is a new entity and we are evaluating what resources we have and… are only expecting to get revenue in the next three years or so. We want to position the company into drilling, mining and mineral beneficiation and obviously diversify our portfolio into other minerals”.
 
He said the strategy was to be able to grow by acquisition and form joint ventures with emerging black empowerment mining groups.