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Belfast implementation project, South Africa – update

9th October 2020

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Belfast implementation project (BIP).

Location
The project is located about 10 km south-west of the town of Belfast, in Mpumalanga, South Africa.

Project Owner/s
Exxaro Resources.

Project Description
The BIP contains a mineral resource of 133-million tons in situ, with a mineral reserve of 46-million tons.

The first phase of the proposed project entails the development of a new greenfield openpit coal mine, including a coal handling and preparation plant, supporting infrastructure and services.

The project will have a 17-year life-of-mine and will produce an estimated 2.7-million tonnes of A-grade thermal coal a year.

Potential Job Creation
The project will create about 6 000 direct and indirect jobs during construction and operation over its mine life.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Capital expenditure has increased from R3.3-billion reported in the financial year ended December 31, 2019, to R3.8-billion reported in the interim results for the six months ended June 30, 2020.

Planned Start /End Date
The project broke ground in July 2018. First coal from the mine was produced in March 2019 and first product sales took place in May 2019.
 
Latest Developments
Belfast is ramping up to full production.

Project close is in progress and is expected to be concluded in the second half of 2020.

Key Contractors, Suppliers and Consultants
DRA (detailed engineering design, fabrication, construction and commissioning of a 500 t/h coal processing project, including a two-stage dense-medium beneficiation plant, a fine-coal dense-medium section for fines treatment and a system for the filtration of slimes, as well as associated product handling systems); Arup (detailed engineering design and construction monitoring of all related infrastructure and services); Concor Infrastructure (construction of all related infrastructure and services); Zest Weg (construction of bulk electrical works); Tyris Construction (construction of all buildings); MMD Africa (detailed engineering design, fabrication, construction and commissioning of the run-of-mine sizing station, including primary and secondary sizers); Epoch Resources (detailed engineering design and construction monitoring of the discard disposal facility); Jodan Construction (construction of the discard disposal facility); GroundTruth (detailed engineering design and construction monitoring of wetland rehabilitation interventions); RCE (detailed engineering design and construction monitoring of the new railway siding); Jodan Construction (construction of the new railway siding); Aurecon (detailed engineering design and construction monitoring of the small-scale agricultural village, which forms part of the project’s resettlement programme for the relocation of households directly affected by future mining operations) and Motheo Construction (construction of the small-scale agricultural village).

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.

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Edited by Creamer Media Reporter

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