Inside mining August 2012 preview

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THE KNOWLEDGE YOU NEED

HOT SEAT

Exxaro’s captive mines general manager, Dr Nombasa Tsengwa, on Tshikondeni’s imminent closure

Highly commended 2011 PICA Cover of the Year - B2B Publishing

ining

MEDIA

FROM THE INDUSTRY EXPERTS

DRA The coal father

TRANSPORT AND EARTHMOVING

Sishen makes way for big buckets and bowls

UNDERGROUND DEVELOPMENT The benefits of doing it right

CRUSHING AND SCREENING Bigger is better

ISSN 1999-8872 • R35.00 (incl. VAT) • Vol. 5 • No. 8• August 2012



CONTENTS

T H E K N O W L E D G E YO U N E E D

ining

August 2012

FROM THE INDUSTRY EXPERTS

Highly commended 2011 PICA Cover of the Year - B2B Publishing

www.miningne.ws

12

MEDIA

THE KNOWLEDGE YOU NEED

LQLQJ

Phola coal processing plant, a

HOT SEAT

Exxaro’s xxaro’s captive captive mi m mines general manager, Dr Nombasa Tsengwa, on Tshikondeni’s imminent closure

The coal father

TRANSPORT AND EARTHMOVING Sishen makes way for big buckets and bowls

UNDERGROUND DEVELOPMENT The benefits of doing it right

CRUSHING AND SCREENING Bigger is better ISSN 1999-8872 • R35.00 (incl. VAT) • Vol. 5 • No. 8• August 2012

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ON THE COVER

FROM THE INDUSTRY EXPERTS

joint venture between BHP Billiton Energy Coal South Africa (BECSA) and Anglo American Thermal Coal. The R814 million project saw the construction of a 16 Mtpm coal washing facility servicing coal from two mines – BECASA’s Klipspruit and Anglo’s Zondagsfontein. DRA designed and built a twin module coal washing facility with a throughput of 1 180 tph per module as well as the ROM storage and materials handling systems. P6

EDITOR’S COMMENT

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Sunrise, sunset – the circle of life

MINING NEWS

4

The top mining stories headlining this month

HOT TOPIC

10 Getting to grips with groundwater HOT SEAT

12 Exxaro’s Tshikondeni walks towards the finish line COAL

28

14 Overcoming coal junior challenges 20 Growth opportunities for the coal industry across multiple platforms

UNDERGROUND DEVELOPMENT

22 The benefits of doing mechanised mining the right way

26 Finland’s concrete aspirations 28 Revolutionising shaft sinking in South Africa TRANSPORT AND EARTHMOVING

32 Sishen’s brand new bucket and bowl workshop 36 HPE breaks new ground 38 Concor’s lucky number 12 40 Trollope spreads its wings and flies

44

CRUSHING AND SCREENING

42 Bigger screens are better says Haver 44 Isithebe’s magic mill lining 46 A decade of demand for BTI rock breakers PUMPS AND MIXERS

48 FLSmidth pumps up its market share 50 Mega mixing 52 Pumping out flagship products Inside Mining 08/2012

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INTERNATIONAL MINING, INDUSTRIAL, CONSTRUCTION AND POWER GENERATION EXHIBITION SHOWCASES NEW INNOVATIONS, PRODUCTS, SERVICES AND TECHNOLOGIES

co-locating in hall 9

Pre-registration is now open for Electra Mining Africa, the ultimate market place for all stakeholders involved in the mining, construction, industrial and power generation industries. Visitors can expect to see leading local and international industry players in the packed halls and outside precincts. It’s the ideal place to view the latest in technology and equipment, innovative products and new supplies and services. Tr a n s p o r t f o r t h e M i n i n g I n d u s t r y

Experts will be on hand to give advice, live demonstrations will be happening daily and co-located conferences and workshops will add even greater value. Electra Mining Africa is recognized as the second largest mining show in the world and the biggest trade exhibition in southern Africa with global recognition for its broad reach across mining, construction, industrial and power generation industries. Electra Mining Africa and co-located Elenex Africa, Machine Tools Africa and Transport Expo runs from 10-14 September 2012 at the Expo Centre, Nasrec, Johannesburg, South Africa.

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Editor’s comment Publisher Elizabeth Shorten Associate publisher Ferdie Pieterse Editor Laura Cornish laura@3smedia.co.za

SUNRISE, SUNSET

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The circle of life

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South Africa: R350.00 (incl VAT & postage) SADC countries: US$80 Foreign: US$100 E-mail: subs@3smedia.co.za ISSN 1999-8872 Inside Mining Copyright 2012. All rights reserved. ___________________________________ All material in Inside Mining is copyright protected and may not be reproduced either in whole or in part without the prior written permission of the publisher. The views of contributors do not necessarily reflect those of the the publishers.

The average mining personality could be described as a ‘forward thinker’, a ‘long-term planner’, or an optimist with an indescribable passion for the industry – often with an over-ambitious frame of mind as well.

Of course you

understand what I am saying – production can always be more, safety statistics should continuously be improved, and broadening horizons across continents is always the plan – am I wrong? We, the small group of mining journalists, are always close by, grappling for the opportunity to share the industry’s ‘never boring’ news and fuelled by the constant buzz and drive of an industry with an insatiable appetite for growth. Who is expanding? Who is investing in a new mine? Who is opening a new mine? We so often get caught up in the future, of what is to come, that we seldom take the time to look at the past and present, and celebrate those mines whose life is coming to an end. Laying a mine to rest is like watching a child leave home – with nothing but memories remaining of the time spent nurturing, caring for and loving – from the parents who gave it life. So when writing about the imminent closure of Exxaro’s special Tshikondeni mine, it brought a tear to my eye. Like the runt of the mining giant’s brood, Tshikodeni is by far the smallest producer in the Exxaro stable. Yet despite its size, has required so much care and attention to prosper in the face of extremely difficult mining conditions. Three small opencast sections will breathe one final breath into the mine before it is returned to the natural state it once was early in 2015. With significant rehabilitation programmes in planning stage, Exxaro is showing nothing but the utmost respect for the land it has drawn from, and brings to mind the following words, which so aptly apply to the lives of our mines, and the responsibility they have to our planet: “A [mine’s] time… rises and falls like the sun. One day, the sun will set on our time and rise on a new generation’s.” When our time as ruler ends, we must return our kingdom to its natural form, connecting us all in the great circle of life.

Having visited Tshikondeni in the early days of my mining career, I truly feel I was part of its life, for just a moment in time, and will celebrate the full circle it will make when future generations will listen to stories of the mine that once was. Before I get too sentimental, I must mention another great mining head who, I found out while writing this very column, is leaving. Fortunately, Kumba Iron Ore CEO Chris Griffith is not leaving the Anglo stable all together, but simply, how can I say it, reshuffling. Griffith will soon be captaining Anglo American Platinum (as of September 2012). Wow, he brought ‘fame and fortune’ to Kumba and with 18 years of experience within the Anglo Platinum stable, has more than enough know-how to offer the industry. The company is financially struggling and is in the midst of reviewing its business. Coupled with the platinum industry’s mini-recession, will he take this company where it needs to go? I am optimistic! One last thing – I look forward to seeing you all at Electra Mining, which is just around the corner. Inside Mining, and its sister website, w w w. m i n i n g n e . w s , will be exhibiting. Let me say this, our stand is sure to wow and mesmerise you, and entice you over for an indepth look. Laura Cornish

To our avid readers, be sure to sign up and get the

latest updates and inside scoop from the mining industry. Check out what we are talking about on our website, Facebook page or follow me on Twitter and have your say. @mining_news www.facebook.com/pages/Mining-News

Inside Mining 08/2012

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Mining news www.miningne.ws

Top mining stories headlining this month

compiled by Ameerah Griffin

| SOUTH AFRICA | Aquarius Platinum to become owner-operator Source: www.miningne.ws

Aquarius Platinum has decided to terminate its contract mining model and will instead apply the ‘owner and operator’ working model to ensure maximum future cost control and flexibility. Aquarius Platinum and contractor Murray & Roberts Cementation have mutually agreed to terminate their contract mining agreement. The board of Aquarius has indicated that it is endeavoring

to proactively manage the company’s business to deal effectively and responsibly with the continuing difficult trading conditions facing the platinum industry in South Africa. The company’s Kroondal, Mimosa and tailings operations will further be optimised to maximise cash flow generation. Blue Ridge, Marikana and Everest have been placed on care and maintenance, and all non-essential capital expenditure will be suspended. This decision has been prompted by several factors including the recent downsizing of the business of Aquarius Platinum South Africa, the changing industrial relations landscape in the country and the continuing margin pressure faced by the platinum industry.

Murray & Roberts Cementation has agreed to provide Aquarius with full support and assistance during a six-month transition period, which is expected to be concluded by the end of December 2012. The transition to owneroperated mining is expected to incur once-off costs of approximately R190 million relating principally to the purchase of mining equipment and stores inventory from Murray & Robert Cementation.

| AUSTRALIA | BHP to grow Australian operations Source: www.theaustralian.com.au

BHP Billton - Olympic Dam BHP Billiton is pushing for environmental approval to grow its iron ore operations in Australia and seeking rights to potentially copperrich land, despite its board having not yet considered

whether to proceed with two key expansion projects in the country costing tens of billions of dollars. BHP has lodged documents with Western Australia’s Environmental Protection Authority to start an environmental review for plans to further boost ore production in the state’s remote Pilbara region to 350 Mtpa by 2020. It also has, in recent months, laid claim to thousands of kilometers of land around its Olympic Dam copper-uranium mine in South Australia. In its application, BHP said it is investigating a number of developments, including bringing new ore bodies into operation at existing sites and developing new mines to grow production to more than double its current production capacity and, in time, grow it to 450 Mtpa. The moves contrast with increasingly cautious comments from mining executives in recent weeks that reflect the slump in commodity prices amid the ongoing economic gloom in Europe and concerns over China’s appetite for metals and minerals.



Cover story

DRA MINERAL PROJECTS

The coal father DRA Mineral Projects has a renowned reputation for its processing expertise, across multiple commodities. Perhaps less commonly known is the foundation upon which its success has grown – the coal sector, writes Laura Cornish.

D

RA’s project portfolio is growing annually, with numerous successes across most mineral sectors. The company has experienced phenomenal growth since its inception in 1984 and has a number of large-scale prestigious projects under its belt. “Our success is based upon humble beginnings, designing small and simple wash plants for the coal sector, with feed capacities of no more than 500 tph,” says Mark Cresswell, consulting minerals processing engineer at DRA.

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Inside Mining 08/2012

Although the company took on its first large coal project in 1996 (the 1 400 tph Twistdraai plant for Sasol Coal), this proved to be a one-off. It was only 10 years later in the mid-2000s that its growth in coal really started to escalate with the awarding of the Western Coal study for the Anglo Coal/ BECSA JV, which eventually became the 2 400 tph Phola coal processing plant, and the rest, as they say, is history. “As the sector currently stands, DRA is singly responsible for about 50% of South Africa’s total coal washing capacity, and

is furthermore accountable for establishing three of the four last major coal projects in the country – Mafube, Phola and Douglas-Middleburg Optimisation (DMO),” Cresswell explains. Considering the company is currently working on another two major coal execution projects, together with a number of studies aimed at moving into execution in the short- to mid-term, its EPCM stronghold in the sector looks set to continue. “Our strategic intention is to move and evolve with the industry, which has already


Cover story DRA prides itself on keeping abreast of the latest processing technologies applicable to the various minerals it is involved with started undergoing changes as more and more players look to acquire new resources and produce new products such as coking coal from coalfields other than the traditional Witbank and Highveld resource, namely the Waterberg and Soutpansberg coalfields in South Africa, Moatize in Mozambique’s Tête Province, as well as in Madagascar and Botswana,” Cresswell continues. DRA is however assisting both governments and developers with infrastructure solutions in these regions. DRA is currently developing a 4 000 tph plant design for Vale’s Moatize Phase 2 project, which will double the project’s treatment capacity from 26 Mtpa to 52 Mtpa ROM material. Also in Mozambique, the company is building a 400 tph modular plant for India’s Jindal Corp, alongside a study for Rio Tinto’s Riversdale resource. The company’s largest current project is the establishment of a 2 000 tph plant for

Xstrata Coal South Africa’s Tweefontein project. The design builds on the success of Xstrata's Australian coal plants such as Mt Owen and Mangoola, with which it shares many conceptual features. For countries like Botswana and Madagascar, one over-riding challenge remains the sole prohibiting factor for potential coal industry booms – the lack of infrastructure such as rail and ports. Once these problems have been resolved, DRA will form an essential part of the coal fields’ development.

New technologies and trends DRA prides itself on keeping abreast of the latest processing technologies applicable to the various minerals it is involved with, and this definitely includes coal. While Cresswell points out that the coal sector is asking the contractor industry to supply larger dense media equipment and technologies that will reduce the volume of water required for coal washing, he speaks extensively of the growing necessity to find solutions for treating coal fines. It has been discovered that in the newer coal fields like Moatize, 70% of the coking coal product can be in the -1 mm coal sizes. This contrasts with an average Witbank thermal coal where typically only 5 to 15% of product comes from this size range. Technologies best suited to such fine grade resources, according to Cresswell, who has spent the majority of his working career in the coal industry, include spirals, teeter bed separators, reflux classifiers, derrick screens and fine dense media separation plants. DRA is, in fact, the only engineering house to build two 50 tph fine coal DMS plants LEFT Phola processing plant RIGHT Twistdraai processing plant

The DRA success formula The key to DRA’s processing success across all of its commodities can be attributed to highly skilled experts in their respective fields. In addition to Mark Cresswell and Herman Oosthuizen (Principal process engineer) as coal preparation specialists in the Johannesburg office, DRA can also call on board director Clive Hart and Mike Salter, based in the Perth and Brisbane offices respectively to offer the industry specialised skills based on long-term, in-depth industry experience. This is proving to be particularly valuable for Australian-based coal mining groups moving into Southern Africa. DRA has also recently recruited a number of young graduate process engineers both in South Africa and Australia. “DRA has gradually built up its processing capabilities by building on its corporate memory, establishing a ‘library’ of sound projects to base new designs on. We have home-grown engineers, base our success on repeat business and are proud of our Tier One supplier status with the Anglo Group.” for Exarro’s Leeuwpan mine to the successful design developed by the Coaltech 2020 programme – a collaborative research programme established to address the specific needs of the coal mining industry in South Africa using local and international knowledge and skills to ensure it remains competitive into the 21st century. And while fine coal products are normally dewatered in centrifuges, dewatering of the slimes is becoming increasingly important as new mines strive to reduce their raw water requirements. For this task, there are numerous filter press technologies emerging from Spain, China and Japan, along with

Inside Mining 08/2012

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Cover story

ABOVE Phola processing plant under construction

older technologies that have been upgraded and refined, such as the Bokela vacuum disk filter (Roymec Technologies), the Phoenix belt press (Malvern Engineering) and paste thickening, Cresswell adds.

Extending the lives of power stations Some of the most exciting coal work DRA is currently involved in is the development of processing strategies for Eskom-tied

collieries, whose sole purpose is to supply coal exclusively to an adjacent power station. The collieries include Khutala, which supplies the Kendal power station; New Denmark, which supplies Tutuka power station and Kriel Colliery, which supplies Kriel power station. All three mines currently supply all their mined raw coal to their respective power stations, which maximises the strategic resource. “However because these mines’ reserves of Eskomquality coal are starting to reach the end of their life, more resources must be found. The short-term solution has been to supplement the supply with trucked in coal, but besides the extra expense, this has led to a severe deterioration in the local provincial roads. We have been appointed to design partial washing plants that are able to upgrade poorer quality reserves within the tied colliery mineral boundaries. The main effect on the

mine will be that it has to increase its mining rate by around 15%, stockpiles and a washing plant will be required, there will also be a coarse discard to dispose of, but the great bonus will be the delivery of a consistent coal quality to the power stations. It should also be noted that there will be a reduction in the sulphur in the washed product of 10 to 15%,” Cresswell explains. Consistency of supply to the Eskom spec is as important as a fluctuating quality. Cresswell explains that the model being copied is Eskom’s Letaba power station, which receives the lowest quality coal in the country from its tied New Vaal Colliery. The Letaba station is considered by Eskom to be one of its crown jewels because the New Vaal plant de-stones the raw coal feed and delivers a consistent quality to the boiler. “Our intention is to deliver New Vaal equivalent plants.” Cresswell notes that all the plants will be large, no smaller than 1 000 tph, and could be approved to move into construction between 2014 and 2020.

In each issue, Inside Mining offers advertisers the opportunity to promote their company’s products and services to the appropriate audience by booking the prime position of the front cover which includes a two-page feature article. The magazine offers advertisers an ideal platform to ensure the maximum exposure of their brand. Please call +27(0)11 465 5452 to secure your booking.



Hot topic

SM ENVIRO

Getting to grips with groundwater Groundwater extraction for industrial use and consumption is a viable water supply and should be given greater usage consideration. However, the need to monitor this resource for toxins and pollutants, and to understand its hydrology is essential, writes Laura Cornish.

S

outh Africa’s surface water resource is reducing, slowly but steadily, meaning the need to secure alternative water sources is essential. Groundwater has always been considered the ‘Cinderella’ of water sources and thus never truly considered a truely viable option, says Dr Shafick Adams, chairman of South Africa’s Groundwater Association and research manager for the Water Research Commission. “Despite its poor reputation, it is a viable source and can assist with the country’s water supply shortage. The cost of accessing groundwater is, in fact, 10 times cheaper to deliver than the cost of a desalination plant,” Adams continues. The key to accessing this resource properly is not the lack of technology to pump it to surface, but the necessity to implement the correct tools to monitor quality, toxicity and hydrology. “There is also almost no cooperative bridge linking the consulting industry with project-implementing engineers on typical groundwater projects. This circumstance, coupled with the lack of tool monitoring training and awareness means that groundwater is often generally being monitored incorrectly, or not at all,” explains Vic Cruger, SM Enviro MD. If groundwater is

to become a sustainable resource, then continuous monitoring is essential. SM Enviro sells process and environmental monitoring instrumentation devices – largely to consulting companies in the field of groundwater across Africa. Its equipment monitors almost every possible waste influence in the water, including pH levels, oxidation reduction potential, conductivity, residual chlorine, turbidity, salinity, total dissolved solids, temperature, as well as levels for resource monitoring and aquifer characterisation.

ABOVE Mine’s must monitor to prevent environmental hazards such as AMD

While the use of groundwater is and will become an increasingly significant municipal initiative for supplying to local communities, it is an extremely important issue to the mining sector as well. “It is essential that the mines are aware of and monitor their tailings

The Vaal Dam

LEFT Tailings dams can be a major source of water pollution if not managed properly

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Inside Mining 08/2012


Hot topic Teaching the new generation Driven by its desire to enable and empower the new generation of consultants and engineers emerging into the water and associated industries with the necessity for groundwater monitoring, the SA Groundwater Association, together with SM Enviro, embarked on a seminar road trip to provide groundwater monitoring training and discussion forums to university students. The one-day seminars were well attended and included the universities of Pretoria, Western Cape and KwaZulu-Natal. A similar seminar was held in Windhoek for consultants mining and government institutions, including the Ministry of Water, Windhoek municipality and Namwater. Consultants and various industry experts also attended and, thanks to the seminar, were provided with the platform to share their industry knowledge. “We were also successfully able to educate students and consultants on the technological advancements of typical monitoring equipment, which today is highly successful in remote monitoring,” Cruger adds. Guest speaker, Dr Ted Way, a senior hydrologist with over 40 years of experience, applauded the event, praising all parties for initiating such a useful information transfer opportunity. Christopher Williams, United States-based international sales manager for In-Situ (SM Enviro has the local distribution rights to sell the In-Situ water monitoring products), also attended. “Africa is becoming an increasingly important continent for our business, and we see massive potential for growth and increased knowledge awareness in this area,” Williams stated.

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facilities for possible seepage, dewatering on surface and underground, as well as wastewater discharge, that could potentially pollute natural surface water streams and rivers, but can also pollute underground water sources as well, which in turn affects surface water streams,” Cruger continues. The mining sector, however, has become exceedingly environment conscious and technologically advanced in terms of its understanding of the need to monitor its

environment-impacting footprint. As a result of this, Cruger believes the country’s mining houses could lead other industries and municipalities forward in terms of learning how to monitor water sources effectively and efficiently. SM Enviro has most recently helped develop a special marine-equivalent monitoring

probe capable of operating at underground depths of 3 000 m – making it ideal for monitoring underground acid mine drainage (AMD) water. The company has instruments installed in numerous different shafts within the central and eastern Witwatersrand gold basins to monitor AMD.

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Hot seat

TSHIKONDENI

Almost time to say goodbye

Exxaro’s Tshikondeni coal mine has travelled a long and unconventionally difficult road since its first production in 1984. As it walks towards the finish line, it will leave a lasting legacy – one that ended on a high note, writes Laura Cornish.

U

nlike the majority of South Africa’s large opencast coal mines, Tshikondeni is an underground, hard coking coal operation, and an extremely difficult mine to operate. Located in the fairly isolated Soutpansberg coalfield in Limpopo, just outside the Kruger National Park, its seam angles are extremely deep, varying between 2 and 18 degrees, explains Exxaro’s

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Inside Mining 08/2012

captive mines general manager, Dr Nombasa Tsengwa. Structurally, the 400 m deep mine is very complex, with faulting and intrusives also having a significant impact on mining with both displacement and devolatilisation of the coal. Major faults in the area tend to be listric normal faults forming steps and grabens, which delineate the different mining blocks. Intrusives occur in the form of

dolerite dykes and sills with thicknesses of between 15 and 30 m, respectively. The intrusives result in a devolatilisation halo that is related to the thickness and/or dip of the intrusive. “These factors have largely influenced the mine’s production volumes, which by comparison with Exxaro’s other coal mines, is extremely small,” Tsengwa continues. Tshikondeni has traditionally mined between 500 000 and 580 000 tpa


Hot seat

While most mines heading towards closure gradually decrease their annual production, with Tshikondeni it is quite the opposite, thanks to a project started last year. “In April 2011, we commenced with our mini-pit project, which entails the addition of three small open-pit operations, that have already successfully seen us increase our annual ROM production to 850 000 tpa, equating to about 350 000 tpa of saleable product,” Tsengwa outlines. Each pit will be mined in sequence, the first already completed, which will take until the middle of 2013 to complete. Trollope Mining Services was appointed to mine all three pits. Each pit is situated close to one of the mine’s old shafts and has been named accordingly after the shafts. All three are no more than 2 km from the mine’s main office buildings. The first mini-pit, Kremetart, took just seven and a half months to complete and delivered an additional 280 000 t of coal. The second pit, Nari, is scheduled to be

Upskilling projects • Exxaro has invested in the establishment of the Sanari Skills Development Centre in the area, aimed at teaching sewing, welding, carpentry and computer skills – the centre is up and running. • The establishment of the Musunda citrus farm – a mango plantation where the trees are currently growing. • The Makuya cattle feedlot. This is due to be commissioned later in 2012, following finalisation of the infrastructure. • Mukomawabani vegetable garden – currently being established.

Building up to, and post closure “We are putting together a comprehensive mine closure plan, which we will finalise at the end of the year. It will look at the mine’s environmental footprint and other postclosure activities, including infrastructure, employees, after-care requirements, and compliance to our social and labour plan, and will also have to be approved by government,” Tsengwa mentions. Management has also already commenced with future forum strategy discussions

“In April 2011, we commenced with our minipit project, which entails the addition of three small open-pit operations.” Nombasa Tsengwa, Exxaro’s captive mines general manager

run-of-mine (ROM), delivering about 200 000 tpa of saleable product. As one of three captive mines in the Exxaro stable, all of its product is sold directly to ArcelorMittal, making it a strategically important asset to the company – until its last month of production. Unfortunately, every mine has a finite lifespan, and Tshikondeni’s is almost up. Its closure will be official in 2015.

completed in November this year, and will deliver a further 200 000 t. Preparation for the third pit, Mopani, has already commenced, and it will deliver about 180 000 t over a six-month time frame. In line with Exxaro’s extensive commitment to best environmental practices, all the pits will be backfilled and rehabilitated. Rehabilitation around the shafts is also an ongoing activity on site. Despite the operating challenges associated with the mine, it has also made remarkable improvements in the area of safety over its life, which last year recorded an impressive 0.12 lost-time-injury rate – below Exxaro’s own target.

with its employees, engaging with them on possible future scenarios once the mine is closed. The workforce is less hostile as a result. “We are investing heavily in reskilling our employees, teaching them different skills, and will even look to possibly relocate those who are willing to move to our other mines.” Tshikondeni employs about 700 permanent staff. In January this year, the Tshikondeni plant was ‘overhauled’ to help better process the coal from the mini pits. Different options are being evaluated regarding what can be done with the plant which still has some operational life left.

Exxaro’s captive mines Exxaro has three captive mines: Tshikondeni, Matla and Arnot. Tshikondeni sells exclusively to ArcelorMittal, with the other two mines exclusively supplying Eskom. Tshikondeni’s production equates to 18% of the company’s entire coal consumption. In exchange, ArcelorMittal and Eskom fund the respective mines’ running costs.

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