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Exxaro will present coal investment proposition at Indaba

MXOLISI MGOJO Exxaro Resources will present a talk about remaining resilient as a coal producer in the face of increasing challenges to coal as a primary energy input, at this years Mining Indaba

Photo by Dylan

BELFAST THERMAL COAL MINE The Belfast thermal coal mine – which is expected to begin its first coal production in the first quarter of 2020 – will be discussed at the 2019 Mining Indaba

25th January 2019

By: Paige Müller

Creamer Media Reporter

     

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South African coal and heavy minerals mining company Exxaro Resources will present its coal investment proposition at this year’s Investing in African Mining Indaba.

On February 5, Exxaro representatives will present on the main stage at the twenty-fifth annual Investing in African Mining Indaba.

“The company plans to outline its standing and future outlook as the current largest thermal coal producer in South Africa,” says Exxaro Resources CEO Mxolisi Mgojo.

Exxaro believes that it has a great outlook for its coal business, boasting a very strong balance sheet, he enthuses.

He reveals that the presentation will feature a glimpse of the company’s R20-billion project pipeline for the next five years, which ought to provide potential investors and stakeholders with insight into the company’s future trajectory.

Mgojo explains that Exxaro fully expects to increase its overall coal production from 45.5-million tons to 60-million tons a year, by the second half of 2022. “The company expects that this increased production will include an increase in its exports, paving the way for Exxaro to become a top ten thermal coal producer globally.”

Exxaro’s presentation will be “an exciting talk about remaining resilient as a coal producer in the face of increasing challenges to coal as a primary energy input, given the disruption posed by the development of new technologies”, he adds.

Mgojo also says the presentation will include discussions around the benefits Exxaro has reaped from digitalising its mining value chain, including a brief overview of progress at its greenfield Belfast thermal coal mine, in Mpumalanga. “The mine also provides an important thermal coal resource for Mpumalanga and has an expected life- of-mine of 17 years for its first phase.”

Initial site construction for the greenfield ‘smart’ mine began in November 2017 and first coal production is expected to begin in the first quarter of 2020. The R3.3-billion mine will include a complete digital replica of the mine itself, which will allow for remote management.

A new, two-stage, 500 Total petroleum hydrocarbons dense-medium separation (DMS) plant will also be established to enhance mineral processing and preparation of coal produced at the site. The plant will also include a fines DMS and filter section.

Mgojo outlines that the plant will primarily produce A-grade, export-quality coal at a projected volume of 2.2-million tonnes a year and will also produce a secondary-quality product for local use or export of about 500 000 t/y.

Exxaro representatives are also expected to take part in several panel discussions. Exxaro sustainability executive head Mongezi Veti will represent the company in a panel discussion on ‘The new era of eco-conscious mining: minimising negative impacts and resolving mining legacies’, coal business executive head Nombasa Tsengwa will sit on the panel on ‘How African coal miners can compete with renewable-energy resources’, projects and technology executive head Johan Meyer will represent the company in a discussion on ‘Sustainable project development: how to rapidly develop a project while ensuring all stakeholders’ needs are balanced’, and human resources executive head Vanisha Balgobind will represent the company at ‘The future of work – innovation focused’ discussion. Other Exxaro representatives expected to be present at the event include finance director Riaan Koppeschaar, stakeholder affairs executive head Mzila Mthenjane and business development executive head Wim Diedericks.

Emphasising the importance of the Indaba, Mgojo states that the local mining sector is not divorced from socioeconomic challenges.

“Just like the country, the local mining industry must confront poor economic growth, a lack of investment, a lack of customer demand, unemployment, a lack of skills and social unrest.”

He says that, while Exxaro has found the Mining Charter to have provided certainty for the industry, he adds that community relations continue to be an area of concern for mining companies, which will that continue to struggle to balance the conflicting needs of communities and operations.

Mgojo also states that the continent continues to struggle with mining policy uncertainty, although demand for commodities has softened and supply is constrained, providing the continent with an opportunity to attract new investment.

“The Indaba remains an important platform for the mining industry to come together and gauge sentiment on mining in Africa,” he says, adding that it provides Exxaro with the opportunity to meet government officials, business partners and existing and potential investors.

Edited by Zandile Mavuso
Creamer Media Senior Deputy Editor: Features

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