Limpopo Business 2017-18 edition

OVERVIEW
Coal
Limpopo contributes 4% of coal mining in South Africa, according to
the National Department of Mineral Resources, but it seems likely that
within the next three decades, the province will be supplying about
half of South Africa’s coal. Limpopo’s Waterberg coal field is estimated
to contain about 75-billion tons of coal.
Supplying coal to power-producer Eskom has for many
years been part of the bread-and-butter income for coal mining
operators. In 2015, Exxaro supplied Eskom with nearly
30% of the coal it needed to run its power stations, about
33-million tons of coal.
Exxaro spent several billion rand expanding its Grootgeluk mine
(which has 3 200 employees) in the expectation that it would supply
coal to Eskom’s Medupi power station. However, construction of the
giant power station has been severely delayed, with the result that
Exxaro is now having to look to export its coal. The plan was for the
mine to supply Medupi with 14.6-million tons of coal every year for 40
years. Exxaro is exploring new technologies at Lephalale, working on
the possibilities of Underground Coal Gasification (UCG).
The diversified resources company recently launched the New
Exxaro Tomorrow (NXXT) programme, which is part of the company’s
2030 vision that has a strong focus on sustainability.
Sibanye Gold has acquired a 51% stake in Waterberg Coal,
further evidence that it intends looking after its own power
supply, at least to some extent.
Coal of Africa is active in Limpopo, with the Vele colliery (coking and
thermal) in the far north of the province and the Greater Soutpansberg
Project /MbeuYashu, which includes CoAL’s Makhado Project (coking
and thermal coal).
Diamonds
Anglo American is investing R2-billion to expand production at
its diamond mine near the town of Musina. Venetia Mine is by far
ONLINE RESOURCES
Chamber of Mines of South Africa: www.bullion.org.za
Geological Society of South Africa: www.gssa.org.za
Mining Qualifications Authority (MQA): www.mqa.org.za
National Department of Mineral Resources: www.dme.gov.za
South African Institute of Mining and Metallurgy:
www.saimm.co.za
the most important part of De
Beers’ South African operation,
accounting for 3.1-million of
the 5.4-million carats recovered
by the company from its six
operations.
Good progress is being made
to convert the mine from an
open-pit mine to an underground
operation, a project that will extend
the life of the mine to the
middle of the 2040s. The project
will employ more than 2 000 people
at its peak period. The first
diamonds to come from the new
mine are expected in 2021 with
the underground mine becoming
the only source of diamonds
in 2023.
The Venetia mine is also the
site of some ground-breaking
research that the De Beers group
is putting in to finding ways to
store carbon by mineralising
kimberlite tailings. It is thought
that kimberlite has the potential
to be carbonised and thus able to
store carbon. The goal is carbonneutral
mining.
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