Name of the Project
Matla life-of-mine (LoM) projects.
Location
In Mpumalanga, South Africa.
Project Owner/s
Exxaro Resources (project management and mining) and Eskom (funding).
Project Description
The Matla Mine 1 has been on care and maintenance since 2016. The 42-year-old operation comprises three underground mines. Matla LoM projects will enable Matla mine to produce 10.06-million tons a year by the third quarter of 2024 for an approved budget of R3.37-billion. Four projects must be delivered to secure the 10.06-million-ton-a-year production target.
Matla Mine 1 relocation (MM1R) aims to produce 4.1-million tons a year of coal. This project will give access to Mine 1 remaining coal reserves through a new boxcut and decline tunnels, bulk materials handling system and associated infrastructure.
Matla short wall replacements (SWR) will supply the MM1R project with five complete suites of underground continuous mining section equipment, and equipment to build supporting infrastructure.
Matla North West Access (NWA) will build two interseams between Seam 4 and Seam 2 to give Mines 3 and 2 access to future reserves, with conveyor infrastructures and ventilation drop raises at both.
Matla Mine 3 Vent Shaft (M3VS) is integrated with NWA Mine 3 to build a ventilation shaft complex to supply additional fresh air to the future Mine 3 production areas.
Potential Job Creation
The overall target for the Matla LoM programme is R300-million for local spend.
Net Present Value/Internal Rate of Return
Not stated.
Capital Expenditure
Eskom is funding the R3.37-billion cost of the Matla LoM projects, while Exxaro remains responsible for the project management and mining.
MM1R is valued at about R2.62-billion. The currently approved Eskom budget is R1.61- billion.
Matla SWR is valued at R967-million and approved by Eskom.
Matla NWA is being developed as an operating expenditure project for R404-million.
M3VS is valued at R274-million and approved by Eskom.
Planned Start/End Date
Construction started in the second half of 2020, with first production from Mine 1 expected to start in the second half of 2024.
First production from Mine 2 and 3 is expected to start in the second half of 2023.
Matla SWR is in implementation and is expected to be completed in the third quarter of 2023.
Matla NWA is in construction and is expected to be completed in 2023.
M3VS is in the construction phase and is expected to be completed in the third quarter of 2023.
Latest Developments
Construction is continuing on all four projects.
Key Contracts, Suppliers and Consultants
WBHO (silo construction at Mine 1); Jodan (enabling works and boxcut at Mine 1); Exxaro Central Engineering Workshop (continuous miner, shuttle car and roof bolter fabrication and assembly for SWR project); Sandvik (supply of mechanical equipment on SWR project); Ritluka (Mine 2 development); Pegasus (M3VS civil works); HMI (overhead line construction at M3VS); Worley (detailed design and construction support on MM1R); DRA (detailed design and construction support on M3VS).
Contact Details for Project Information
Exxaro Resources investor relations tel +27 12 307 7393 or email investorrelations@exxaro.com.