Name of the Project
New Rapid Load Out Station project.
Location
Limpopo, South Africa.
Client
Exxaro Resources.
Project Description
The Grootegeluk Exxaro opencast coal mine, in Lephalale, is forecasting a number of growth opportunities in product export volumes 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.
To load an additional 19-million tonnes a year and comply with the latest Transnet Freight Rail 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.
Jobs to be Created
The Exxaro project team comprises 37 people and the contractors comprise a total estimated at 850 people for the duration of the project.
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%.
Value
The project will be developed at an estimated cost of R1.33-billion.
Duration
The project started in September 2015 and is expected to be completed by July 2019.
Latest Developments
Detailed engineering for bulk materials handling was 59% complete.
Construction for early works is in progress and the rail civil and plate laying construction contract has been awarded.
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).
On Budget and on Time?
Project is still in the construction phase.
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.