Mpumalanga Business 2019/20 edition

OVERVIEW
Mining
Sasol’s R5.6-billion Impumelelo Colliery is producing coal.
SECTOR INSIGHT
Mineworkers at Arnot mine
have become majority
shareholders.
After Exxaro Coal Mpumalanga’s transfer of its 50% stake in
the Arnot coal mine to mineworkers at no cost, the workers
received a further 5% “free-carry” because of the specifications
of Mining Charter III. The mine thus becomes South Africa’s
first majority worker-owned mine. Wescoal is the other shareholder and
operator of the mine.
Wescoal’s profits doubled in 2018 to R202-million, proof that the coal
miner’s acquisition and expansion strategy is paying off. The company,
which runs three mines and four processing plants in Mpumalanga, has
a resource base of about 300Mt.
Although renewable energy is catching on in South Africa, there
is no prospect of Mpumalanga’s coal-fired power stations being
mothballed soon.
Nkomati Anthracite has been revived after an investment from
Unicorn Capital Partners, formerly Sentula Mining. The mine, which is
in the south-eastern corner of the province, has proven resources of
8.7-million tons and upwards of 400 jobs were created over the last two
years. Local communities have a 16.1% stake in the relaunched mine
and the Mpumalanga Economic
Growth Agency (MEGA) holds 34%.
Coal giant Exxaro, which runs
five mines in the province, has
committed R3.8-billion to its
Belfast project, an investment
that will create 1 160 jobs and
have an impact on the GDP (over
the life of the mine) of R39-billion.
Exxaro is also extending the life
of its Leeuwpan Mine by another
10 years.
Mpumalanga accounts for 83%
of South Africa’s coal production
and is the third-largest coalexporting
region in the world.
The opening in April 2019
of Sasol’s Impumelelo Colliery
south-west of Secunda was the
final phase of an investment in
new coal mines to replace three
coal mines that had reached the
end of their lives. Sasol produces
40-million tons of coal annually.
Impumelelo, which will produce
8.5-million tons per year, cost
R5.6-billion to build.
Anglo American has sold its
thermal coal operations to Seriti,
which is therefore the secondlargest
provider of thermal coal
to Eskom, supplying almost a
quarter of the utility’s annual coal
requirements.
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