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Belfast coal project, South Africa

20th January 2017

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Belfast coal project.

Location
Mpumalanga, South Africa.

Client
Diversified resources company Exxaro Resources.

Project Description
The Belfast coal project contains measured mineral resources of 81-million tonnes and 22.4-million tonnes in the indicated category.

The proposed project entails the development of an openpit and underground mine with a 17-year life-of-mine to produce an estimated 2.2-million tonnes a year of A-grade thermal coal and 500 000 t/y of Eskom coal.

The mine will produce coal for export and supply one of State-owned power utility Eskom’s plants.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
Exxaro plans to spend R3.8-billion on building the mine.

Duration
Not stated.

Latest Developments
Owing to an appeal on Exxaro’s rezoning application, a further delay in the start of construction is expected.

Construction is expected to start in the second half of 2017. This appeal will be dealt with in terms of the applicable legislations.

The project team is continuing with project work to be ready for construction, should the rezoning appeal matter be dealt with sooner.

Key Contractors and Suppliers
DRA (detailed design and engineering of a 500 t/h coal processing project, including a two-stage dense-medium beneficiation plant, a fine-coal dense-medium section for fines treatment, and a system for the filtration of slimes, as well as associated product handling systems); Arup (design, tender and construction monitoring); MMD Africa (detailed design and engineering of run-of-mine sizing station); EPOCH Resources (detailed design and engineering of the discard disposal facility) and GroundTruth (detailed design and engineering of wetland rehabilitation interventions).

On Budget and on Time?
The start of the project has been delayed by 12 months.

Contact Details for Project Information
Exxaro Resources GM Mpumalanga area Bram van Stelten email bram.vanstelten@exxaro.com.
Exxaro Resources executive head: strategy and stakeholder engagement  Mzila Mthenjane, tel +27 12 307 7393 or email investorrelations@exxaro.com.

Edited by Creamer Media Reporter

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