Name of the Project
Grootegeluk rapid load-out station project.
Location
Limpopo, South Africa.
Project Owner/s
Exxaro Resources.
Project Description
The Grootegeluk Exxaro opencast coal mine, in Lephalale, is forecasting a number of export product growth opportunities in the next five years. Subsequently, an upgrade to the current rail siding loading facilities will be required.
The project is a strategic project that allows for growth and future projects at Grootegeluk. The project is aligned with Transnet Freight Rail’s (TFR’s) North-West corridor expansion project.
To load an additional 12-million tonnes a year and comply with the latest TFR strategy to accommodate a 200-wagon train will necessitate the complete upgrade of rail and associated infrastructure.
The product beds, conveyors, transfer stations and load-out station will be designed to load various types of product from across the plant area and will vary from export to domestic products.
The new train load-out facilities include the upgrade of the current siding with an extra loop that will be fed by a new 3 500 t rapid load-out station silo. The scope of work comprises a bulk materials handling area and the rail loop area.
Potential Job Creation
The Exxaro project team comprises 37 people and the contractors comprise an estimated 850 people for the duration of the project.
All-in Sustaining Costs/ All-in Costs
Not stated.
Net Present Value/Internal Rate of Return
The project has a net present value of R299-million and an internal rate of return of 18%.
Capital Expenditure
The project will be developed at an estimated cost of R1.33-billion.
Planned Start/End Date
The project started in September 2015 and is expected to be completed by July 2019.
Latest Developments
The project is ramping up and train sequencing is in progress.
Force majeure events pertaining to contractor strike action and poor contractor performance have led to project delays, with hot commissioning having expected to be concluded early in the first quarter of 2020.
Forecast final costs are within the allocated project budget and the delay will not affect the TFR ramp-up schedule.
Key Contracts and Suppliers
R&H Rail (detailed engineering for rail loop area); Hatch Goba (detailed engineering for bulk materials handling area); Virtuoso (early works construction) and Murray & Roberts (rail civil and plate-laying construction).
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.