OVERVIEW
Mining Sasol’s R5.6-billion Impumelelo Colliery is producing coal.
SECTOR INSIGHT Mineworkers at Arnot mine have become majority shareholders.
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fter Exxaro Coal Mpumalanga’s transfer of its 50% stake in the Arnot coal mine to mineworkers at no cost, the workers received a further 5% “free-carry” because of the specifications of Mining Charter III. The mine thus becomes South Africa’s first majority worker-owned mine. Wescoal is the other shareholder and operator of the mine. Wescoal’s profits doubled in 2018 to R202-million, proof that the coal miner’s acquisition and expansion strategy is paying off. The company, which runs three mines and four processing plants in Mpumalanga, has a resource base of about 300Mt. Although renewable energy is catching on in South Africa, there is no prospect of Mpumalanga’s coal-fired power stations being mothballed soon. Nkomati Anthracite has been revived after an investment from Unicorn Capital Partners, formerly Sentula Mining. The mine, which is in the south-eastern corner of the province, has proven resources of 8.7-million tons and upwards of 400 jobs were created over the last two years. Local communities have a 16.1% stake in the relaunched mine MPUMALANGA BUSINESS 2019/20
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and the Mpumalanga Economic Growth Agency (MEGA) holds 34%. Coal giant Exxaro, which runs five mines in the province, has committed R3.8-billion to its Belfast project, an investment that will create 1 160 jobs and have an impact on the GDP (over the life of the mine) of R39-billion. Exxaro is also extending the life of its Leeuwpan Mine by another 10 years. Mpumalanga accounts for 83% of South Africa’s coal production and is the third-largest coalexporting region in the world. The opening in April 2019 of Sasol’s Impumelelo Colliery south-west of Secunda was the final phase of an investment in new coal mines to replace three coal mines that had reached the end of their lives. Sasol produces 40-million tons of coal annually. Impumelelo, which will produce 8.5-million tons per year, cost R5.6-billion to build. Anglo American has sold its thermal coal operations to Seriti, which is therefore the secondlargest provider of thermal coal to Eskom, supplying almost a quarter of the utility’s annual coal requirements.
