Grootegeluk 6 expansion project, South Africa – update
Name of the Project
Grootegeluk 6 (GG6) expansion project.
Location
Limpopo, South Africa.
Project Owner/s
Exxaro Resources.
Project Description
The project entails the expansion of the existing Grootegeluk 2 plant to allow for the production of 1.7-million tonnes a year of semisoft coking coal.
Potential Job Creation
Up to 2 000 contract positions at peak construction will be created. About 100 permanent positions will be created once the plant is in operation.
Net Present Value/Internal Rate of Return
Not stated.
Capital Expenditure
The forecast final cost to completion is expected to be R5.3-billion, with project close-out expected in the second quarter of 2022.
Planned Start /End Date
First production was achieved in the first half of 2021, with full production targeted for the first half of 2022.
Latest Developments
Exxaro completed the construction of the GG6 project in the financial year ending December 2021. The company’s focus in the 2022 financial year will be to close out the GG6 project.
Key Contracts, Suppliers and Consultants
SMEI, Advent One Projects, RULA.
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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