Name of the Project
New 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 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.
Potential Job Creation
The Exxaro project team comprises 37 people and the contractors comprise an estimated 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%.
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
Grootegeluk’s rapid load-out station project is aligned with Transnet Freight Rail’s (TFR’s) north-west corridor expansion project.
The project aims to have cold commissioning concluded by the third quarter of this year.
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?
Force majeure events pertaining to contractor strike action have led to a delay on the projected completion date from the third quarter to the fourth quarter of this year. Forecast final costs are within the allocated project budget and the delay will not affect the TFR ramp-up schedule.
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.