JOHANNESBURG (miningweekly.com) – JSE-listed Wescoal has received regulatory approval from the Department of Mineral Resources to start producing at its expanded Khanyisa colliery, in Mpumalanga.
The company on Wednesday said mining activities have started in the Khanyisa Catwalk, as well as the adjacent Khanyisa Triangle areas near Ogies, with production from the enlarged Khanyisa complex to ramp up to 100 000 t/m over the next six months.
Khanyisa Catwalk is wholly-owned by Wescoal, while Khanyisa Triangle is 100%-owned by Aztolinx, an incorporated joint venture vehicle in which Wescoal owns 35%.
The Aztolinx initiative is 85%-black-owned and is in line with Wescoal’s commitment to transformation and empowerment.
Wescoal CEO Waheed Sulaiman said significant operational synergies between the two operations will be unlocked, allowing the Khanyisa complex to be mined more efficiently, while extending the mine life to more than five years.
The Khanyisa complex is close to both the Kendal and Kusile power stations, as well as the Kendal siding and the Richards Bay export rail network. These factors, coupled with the majority black ownership component, augur well for securing favourable long-term coal supply contracts in various markets including with Eskom, with non-Eskom domestic customers and the export coal market.