Grootegeluk 6 expansion project, South Africa – update
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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.
Planned Start /End Date
The project was commissioned in the first half of 2022.
First production through the small coal plant was achieved during the first quarter of 2021. Construction was concluded during the fourth quarter of 2021.
Latest Developments
The GG6 project’s new small coal plant was commissioned in the year ended December 2022, and all four modules are in production. The project will close out by the first half of 2023.
Key Contracts, Suppliers and Consultants
SMEI; Advent One Projects; and 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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