Name of the Project
Grootegeluk 6 (GG6) expansion project.

Location
Limpopo, South Africa.

Project Owner/s
Exxaro Resources.

Project Description
The project entails the expansion of the existing Grootegeluk 2 plant to enable the production of 1.7-million-tonne-a-year to 2.7-million-tonne-a-year semisoft coking coal.

Potential Job Creation
Up to 2 000 contract positions at peak construction. Around 100 permanent positions once the plant is in operation.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
R4.8-billion.

Planned Start /End Date
First production is expected in the second half of this year (2019), with full production expected by the end of 2020.

Latest Developments
As a result of the Group Five contract being terminated in March 2019, a procurement process for the full Group Five scope of work has been concluded, contracts awarded and full construction activities were expected to start in July 2019.

The project team, together with operations, is working on action plans to minimise any volume and value impact caused by the expected three to six months’ delay.

Key Contracts and Suppliers
SMEI, Stefstocks Joint Venture, thyssenkrupp.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Exxaro Resources executive head: strategy and stakeholder engagement Mzila Mthenjane, tel +27 12 307 7393 or  email investorrelations@exxaro.com.