At present, Magatar conducts business in Australia and South Africa. Oportunities are being investigated in other jurisdictions such as Africa and New Zealand.

AUSTRALIA

Australia is the largest exporter of coking coal to the Asian market. This is attributed to Australia's substantial coking coal reserves, its close proximity to the Asian market as well as the high extraction rates achieved by Australian mines. Australia has well developed infrastructure to support the export business; this includes power supply, railway infrastructure as well as port capacity. The infrastructure is well maintained and expanded on a continuous basis.

Owing to the increasing demand for coal, reserves which were previously considered to be uneconomical to mine are now being considered for mining. Magatar's LCM Methodology enables it to target such marginal reserves more economically than conventional operators.

SOUTH AFRICA

The majority of South Africa's underground coal reserves are not suitable for longwall mining and Magatar's LCM methodology offers an efficient and cost effective coal mining method for typical South African mining conditions. Eskom's increasing demand for coal offers exciting opportunities for application of Magatar's methodology especially in the lower seams that will have to be mined to satisfy Eskom's future demands.