Name and Location
Makhado coking coal project, Limpopo, South Africa.
Client
Coal of Africa Limited (CoAL).
Project Description
The Makhado project is CoAL’s anchor project in the Soutpansberg coalfield, in Limpopo, where the company has access to a significant hard coking and thermal coal resource, with the gross tonnes in situ estimated at eight-billion tonnes.
A definitive feasibility study has defined a 16-year life-of-mine, with mining expected to take place at an average rate of 12.6-million tonnes a year of run-of-mine to produce 2.3-million tonnes a year of hard coking coal and 3.2-million tonnes a year of thermal coal at a steady state.
The resource will be mined on an opencast basis, with potential underground expansion.
The project has been divided into three mining areas for technical, logistical and practical reasons – East pit, Central pit and West pit.
Mining will be staggered, starting with the East pit, followed by the Central and West pits. The development of the East pit will include plant and infrastructure components, which will cater for the production volumes from the other pits.
The processing plant will comprise:
• a double-stage dense-medium separation plant for the destoning and beneficiation of the hard coking coal and the thermal product, achieved through a high-gravity wash, and followed by a low-gravity wash for the coarse-size fraction of –50+1mm;
• a fines (–1+0.15mm) circuit, encompassing a low-gravity reflux classifier process for the production of the coking coal and a high-gravity reflux classifier for the production of the thermal product; and
• an ultrafines (–0.15mm) circuit of Jameson column flotation cells for the production of the coking coal and a potential thermal product.
Value
Capital expenditure is pegged at R3.96-billion, including contingency.
Duration
Not stated.
Latest Developments
CoAL reported continued discussions with stakeholders, including the communities and the Department of Mineral Resources in advancing the award of the Makhado New Order Mining Right (“NOMR”) in the quarter ended December 31, 2014.
The company continues to engage with the Department of Water Affairs to progress the application for the project’s integrated water-use licence, which CoAL expects will be issued after the receipt of the NOMR.
Meanwhile, during the above-mentioned quarter, an interim court interdict was issued against the Makhado project o stop any mining or construction activity at the site. CoAL, as one of the respondents, has started working with the other respondents to set aside the interim interdict. CoAL does not expect this process to impede the delivery timetable for the mine to reach commercial production during 2019, as no construction or mining activities are expected in 2015.
Key Contracts and Suppliers
Too early to state.
On Budget and on Time?
Too early to state
Contact Details for Project Information
CoAL head of engineering Nico Pretorius, email nico.pretorius@coalofafrica.com; or investor relations and business development manager Celeste Harris, email celeste.harris@coalofafrica.com.