SUPPLYING ESKOM Vlakvarkfontein produces about 120 000 t of coal a month, of which about 100 000 t are allocated to State-owned power utility Eskom
ASX- and Aim-listed coal mining company Continental Coal’s Vlakvarkfontein mine, in Mpumalanga, continues to exceed production targets, having delivered 419 889 t run-of-mine (RoM) coal during the third quarter of this year, with about 1.3-million tonnes of coal expected in 2014.
This year’s figures are, how- ever, 4% lower than the previous corresponding period, but 21% above the planned production.
The Vlakvarkfontein project started operations in February 2010, with capital costs amounting to R80-million, which were paid off in the first half of this year, Continental Coal COO Johan Heystek tells Mining Weekly.
He adds that the project is profitable and paying dividends.
“Vlakvarkfontein produces about 120 000 t RoM monthly, with about 100 000 t allocated to State-owned power utility Eskom through two contracts, one directly with Eskom and another through a third-party agent,” explains Heystek.
The remaining 20 000 t of coal is of a lower grade, which is not suitable for use in Eskom’s power stations and is sold to coal traders, largely for domestic use.
Heystek adds that, with regard to RoM and saleable coal, the mine has exceeded targets by about 9% this year.
Mining Weekly reported in September that, according to a Continental Coal operations review, production from the Vlakvarkfontein mine increased 23% year-on-year and contrib- uted 1.5-million tons to total RoM production.
Further, the mine exceeded its planned production and recorded free-on-truck (FoT) costs of R140/t, which was 6% below planned costs, comparing well with the R131/t recorded for the 2012/13 financial year.
The mine has demonstrated its ability to deliver consistently and is forecast to deliver 1.3-million tons at an FoT cost of R152/t during the 2013/14 financial year, Continental Coal notes.
Heystek states that the mine has been running efficiently as Continental Coal has a solid understanding of the mine’s geology.
“We drilled holes on a 50 m grid ahead of mining, which enabled the company to mine in an efficient manner,” he states.
Heystek adds that the mine’s operating contractor, surface services provider Trollope Mining Services, has also played a significant role in ensuring that operations at Vlakvarkfontein are successful.
There has also been minimal rehandling of materials, he says, as Eskom has rejected only three out of the 500 stockpiles that the Vlakvarkfontein mine built and, subsequently, rebuilt.
Heystek further mentions that the mine manager plays a pivotal role in ensuring the quality of the coal, with the assistance of mineral resource exploration and mining consultancy Caracle Creek International Consulting, the mine’s geology specialist.
The project has about seven years of exploitable resources remaining, based on current production levels, which will result in the project running until 2019/20. However, should production levels increase, resources could be depleted sooner, he says.
The project currently employs 140 people and is completely mechanised, with no manual materials handling required.
“The coal is handled by articulated dump trucks and excavators, with machines crushing and screening the materials,” states Heystek.
“Vlakvarkfontein is located near the N12 highway and the Hawerklip railway siding, which transports the coal and reduces the number of heavy-duty trucks required on the road,” he adds.
Project Challenges and Safety Standards
Heystek says that, when the project first started in 2010, there was some community unrest relating to job-creation numbers and the environmental impact of the mine on the community, which hampered the initial construction of the mine.
However, he mentions that, over the past two years, Continental Coal’s relationship with the local community leaders has improved and no major disruptions or unrest has since occurred.
“What continues to challenge our operations at Vlakvarkfontein, however, are intermittent strikes and go-slows by road-freight transporters, which impact significantly on the mine, as it depends heavily on road haulage to get its product to the Eskom power stations,” Heystek explains.
“Vlakvarkfontein has done tremendously well in terms of safety standards, as the mine has had no serious site accidents and has a lost-time-injury frequency rate of below two for every one-million hours worked, which is in line with benchmark industry standards,” he enthuses.
Heystek attributes the high safety levels to Continental Coal’s willingness to allow Trollope Mining Services to establish its own safety system for the site, which is supported by Continental Coal’s own project manager and site engineers.
“This ensures that all systems are run in accordance with industry standards,” he says.
Heystek says that the project has – in accordance with the mine’s social labour plan – sourced about 95% of its workforce from the Delmas municipality region and its surrounding areas, such as the Arbor and Argent villages.
“Continental Coal has also sponsored ten locals to be trained by Trollope Mining Services to become qualified and skilled machine operators. “So far, seven of the trainees have com- pleted their training and are working on mines in and around the Delmas area,” he concludes.