Grootegeluk 6 expansion project, South Africa

25th September 2020 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

Grootegeluk 6 expansion project, South Africa

Name of the Project
Grootegeluk 6 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 to 2.7-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
Capital expenditure has increased from R4.8-billion reported in the financial year to December 31, 2020, to R5.3-billion in the six months ended June 30, 2020.

Planned Start /End Date
First production is expected in the second half of 2020 and full production in 2021. 

Latest Developments
Construction is continuing on the project.

Key Contracts,  Suppliers and Consultants
SMEI, Stefstocks Joint Venture, thyssenkrupp.

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.