Name of the Project
Grootegeluk 6 (GG6) expansion project.
Location
Limpopo, South Africa.
Project Owner/s
Coal and heavy minerals mining company 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
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
Owing to the impact of the Covid-19 pandemic, the GG6 project has been delayed by seven months, resulting in an overall delay of 13 months.
Latest Developments
The current estimated capital overrun of about 10% for the GG6 project is still as per previous guidance provided.
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.