Shondoni coal project, South Africa

22nd February 2013 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

Name and Location
Shondoni coal project, Mpumalanga, South Africa.

Client
Sasol Mining.

Project Description
The project will result in the construction of a new mine to replace output from Sasol’s mature Middelpunt coal mine, which is nearing the end of its useful life.

The extractable reserves at Shondoni are estimated at about 190-million tons, which translates into an operating life of 20 years.

The mine will deliver 9.2-million tons a year of streaming coal when in full production.

The move to develop the mine forms part of what Sasol has previously described as an “intense capital replacement” programme involving three significant projects, namely Shondoni, Thubelisha and Impumelelo.

Value
R5-billion.

Duration
Not stated.

Latest Developments
At the end of December 2012, Sandvik Mining signed a mining systems contract with Sasol Mining for the Shondoni project. The contract is valued at more than R800-million.

The order entails the supply of surface and underground mining equipment for the new coal mine. The scope of supply includes engineering design, procurement and construction for the mine’s materials handling system.

Key Contracts and Suppliers
WorleyParsons (engineering procurement and construction) and Sandvik Mining (materials handling systems).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sasol group media manager, Alex Anderson, tel + +27 71 600 9605 or email
alex.anderson@sasol.com.
WorleyParsons (Secunda), tel +27 17 631 3447 or fax +27 17 631 3648.
Sandvik Mining Systems, Manfred Schaffer, tel +43 316 902 62 65 10.