Name of the Project
Thabametsi coal mine – Phase 1 project.

Location
Limpopo, South Africa.

Project Owner/s
Exxaro Coal.

Project Description
The Thabametsi project has proven and probable reserves of 130-million tonnes.

The proposed opencast greenfield mine is expected to produce an average of 3.9-million tonnes a year in power station coal for the estimated 600 MW Thabametsi independent power producer (IPP) coal-fired power plant. The IPP is a preferred bidder under the Department of Energy’s (DoE’s) Coal Baseload IPP Procurement Programme (CBIPPPP).

Thabametsi coal mine has a  mine life of more than 30 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Phase 1 will be developed at an estimated cost of R3.2-billion.

Planned Start/End Date
Not stated.

Latest Developments
Implementation of the Thabametsi coal IPP has been delayed owing to, inter alia, the finalisation of the licence to operate approvals and lenders withdrawing funding support for “old coal technology” coal-fired power stations.

Exxaro has completed all its Thabametsi mine studies and has obtained all necessary licences to operate, but will not progress until the coal IPP can achieve financial close. Engagements are taking place with the project developer of the coal IPP to bring clarity to the future of this project.

The relevant capital expenditure has, therefore, been moved out from the 2019 financial year figures into future years.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

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.