Name of the Project
Menar coal projects.
Location
Gauteng, KwaZulu-Natal and Mpumalanga, in South Africa.
Project Owner/s
Menar Coal through its subsidiary Canyon Coal.
Project Description
Menar expects to produce 20-million tons of coal a year from 2021/22.
Several projects are proposed, including:
- the Palmietkuilen project is located near Springs in Gauteng. It will be an opencast mine producing 600 000 tons a month of coal at steady state production with a life of mine of about 22 years.
- the De Wittekrans project, located south of Hendrina, in Mpumalanga, which will be an opencast and underground operation, with an estimated 25-year life-of-mine (LoM), based on run-of-mine (RoM) production of 200 000 t a month.
- the Witfontein underground and opencast coal project, north-west of Bethal, in Mpumalanga, which has an estimated LoM of nine years, based on RoM production of about 100 000 t a month.
- the Riversdale Anthracite Colliery project, is located in Vryheid, KwaZulu-Natal will be an underground project with a 6 year LoM, based on RoM production 30 000 t a month.
- the Springfield opencast project, in Vereeniging, Gauteng, with an LoM of about 36 years, based on RoM production of about 600 000 t a month.
- the Driefontein opencast project, in Middelburg, Mpumalanga, with an LoM of about eight years based on RoM production of about 50 000 t a month.
- the Koppie underground project, in Bethal, Mpumalanga with an LoM of about 20 years, based on RoM of about 150 000 t a month.
- the Birmingham underground project, in Hendrina, Mpumalanga with an LoM of 13 years based on RoM production of 300 000 t a month.
- the Kusipongo underground project, outside of Piet Retief, Mpumalanga with LoM of in excess of 38 years based on a RoM production of 125 000 t a month.
Menar has already ramped up the Khanye Colliery, in Bronkhorstspruit, Gauteng, which is producing 2.4-million tons of coal a year. Hakhano Colliery – the group’s first opencast mine – processing plant will be restarted once a new nearby mining project receives the required licenses.
Mining operations started at the Phalanndwa Colliery Extension following the first large-scale blasting of coal on July, 17, 2019. The extension project is expected to extend the LoM to 2025. The project has reached steady state production and is producing an average of 120 000 t a month of RoM.
Potential Job Creation
The Menar coal projects are expected to create 5 600 jobs, including direct employment of 320 jobs at the Palmietkuilen project; 430 jobs at the Wittekrans project; 200 jobs at the Witfontein coal project; 200 jobs at the Riversdale Anthracite Colliery; and 400 jobs at the Springfield opencast mine.
The operating Khanye Colliery employs 400 people.
The Phalanndwa Colliery extension projects employs 200 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, R1.5-billion in the Palmietkuilen and De Wittekrans projects; R1.5-billion in the Springfield project; R700-million in the Witfontein project; R1-billion in the Birmingham and Koppie projects and R300-million in the Riversdale Anthracite Colliery.
Planned Start/End Date
De Wittekrans project is anticipated to start production in 2021.
Palmietkuilen project is anticipated to start production in 2021.
Development of the Riversdale project will also start early in 2021.
Witfontein project is anticipated to start production in 2021.
Springfield project is anticipated to start production in 2022.
Development of the Birmingham and Koppie projects will start in 2022.
The start dates for the projects are subject to coal market conditions.
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Menar, tel +27 11 783 7996 or email info@menar.com.