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Menar coal projects, South Africa

6th March 2020

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Menar coal projects.

Location
Gauteng, KwaZulu-Natal and Mpumalanga, in South Africa.

Project Owner/s
Menar.

Project Description
Menar expects to produce 20-million tons of coal a year from 2021/22.

Several projects are proposed, including:

• the Phalanndwa Colliery extension project, which is expected to produce an average of 1.4-million tons of coal a year at steady state.

• the Palmietkuilen project, in Gauteng.

• the De Wittekrans project, located south of Hendrina, in Mpumalanga, which will be an opencast and underground operation, with a 24-year life-of-mine (LoM), based on run-of-mine (RoM) production of 300 000 t a month.

• the Witfontein underground coal project, north-west of Bethal, in Mpumalanga, which has an estimated LoM of ten years, based on RoM production of about 100 000 t a month.

• the Riversdale Anthracite Colliery project, in Vryheid, KwaZulu-Natal.

• the Springfield opencast mine, in Vereeniging, Gauteng, with an LoM of about 30 years, based on RoM production of about 500 000 t a month.

Menar, through its Canyon Coal subsidiary, has already ramped up the Khanye Colliery, in Bronkhorstspruit, Gauteng, which is producing 2.4-million tons of coal a year.

Potential Job Creation
The Menar coal projects are expected to create 5 600 jobs, including 200 jobs at the Phalanndwa Colliery extension project; 800 jobs at the Palmietkuilen project; 400 jobs at the Wittekrans project; 500 jobs at the Witfontein underground coal project; 200 jobs at the Riversdale Anthracite Colliery; and 800 jobs at the Springfield opencast mine.

The operating Khanye Colliery employs 400 people.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Menar plans to invest R7-billion in coal projects from now to 2022, including R1-billion in the Phalanndwa extension project; R1.5-billion in the Palmietkuilen project; R600-million in De Wittekrans; R1-billion in the Witfontein underground coal project; and R300-million in the Riversdale Anthracite Colliery.

Planned Start/End Date
Not stated.

Latest Developments
None stated.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Menar, tel +27 11 783 7996 or email info@menar.com.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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