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‘Carbon capture’ distribution centre strengthens coal miner’s operations

13th March 2015

By: Bruce Montiea

Creamer Media Reporter

  

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Coal miner and supplier Wescoal Holdings’ new “carbon capture distribution centre”, launched in November last year, is helping the company reduce its carbon footprint and survive challenging market conditions, says CEO Andre Boje.

“The ‘carbon capture’ site substantially reduces the company’s carbon footprint by switching transportation from road to rail and ensuring that the product does not go to ground during transportation, transshipment or bulk storage,” he says.

Boje says the Wescoal distribution centre, based in Bellville, the Western Cape, is the first of its kind in the industry and, in addition to other measures, such as an effective growth and acquisitions strategy undertaken last year, the facility has helped Wescoal survive turbulent times in an international coal industry hit by pressure on coal prices.

The distribution centre allows for 10 000 t/m of coal, or the loads of 350 road vehicles, to be taken off the road and transported by train, he says.

“The containers are railed and delivered to site on trailers. The first stage of the transshipment is to decant the containers by tipping them into a large hopper that can accommodate 30 t, which is then fed by conveyor to be loaded into back door shipper-owned containers for delivery or storage,” he explains.

He adds that Wescoal’s decision to concentrate on its business in South Africa was correct, as coal is a strategic resource that can contribute to solving the power difficulties that State-owned power company Eskom and industry in general are facing.

Wescoal does not export coal, therefore, it has been able to resist some of the market hardships that are forcing big miners in South Africa and countries such as Australia to close and shelve projects, says Boje, adding that the company produces thermal coal for the domestic market, for both Eskom and industrial customers, from its mines around Ogies and Middelburg, which are well served with infrastructure.

“Margins on selling to Eskom are not as high as they can potentially be on exports, but it is a reliable market and Eskom is expected to run short of coal by 2020, when many of its long-term contracts come to an end.”

Furthermore, Boje says another factor that enables Wescoal to be stable is its sophisticated trading division, which makes it possible for the company to serve both the general domestic coal market together with the company’s mining division.

Corporate Social Investment
Boje says Wescoal is also benefiting from its long term corporate and social investment policy, which includes the provision of education bursaries and houses.

On January 27, a housing programme initiated by Wescoal GM for mining operations Bonani Siko, in support of the communities around the Kendal area of Mpumalanga, delivered the first three houses to the Arbor community.

“In total, we will have 18 houses for disadvantaged community members and our target is to deliver one house per month from now on,” says Siko, adding that local people from the Arbor community are participating in the housing project to assist in job creation.

Edited by Leandi Kolver
Creamer Media Deputy Editor

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