OVERVIEW
Mining The revival of Matla coal mine will cost R3.3-billion.
M
ining contributes 25.9% of the province’s gross domestic product and employs more than 53 000 people. Expansion projects by several miners are underway, including South32, Exxaro Resources, Pan African Resources and Canyon Coal. Mpumalanga accounts for 83% of South Africa’s coal production and is the third-largest coal-exporting region in the world. Although renewable energy is catching on in South Africa, there is no prospect of Mpumalanga’s coal-fired power stations being mothballed soon. National utility Eskom will spend R3.3-billion on the revival of the Matla coal mine. The mine was put on care and maintenance in 2016 but expectations are that it should be able to produce more than 10-million tons per annum by the second half of 2024. Exxaro Resources will manage the project and do the mining while major companies such as DRA, Worley, Sandvik and WBHO will also be involved. Other companies engaged in expansion of life-of-mine projects are Pan African Resources and Evander (Elikhulu tailings), Exxaro Resources (Leeuwpan) and South32, which is spending about R4.3-billion at Klipspruit. Menar, which has several operations in Mpumalanga via Canyon Coal and Kangra, will spend about R600-million the first phase of its De Wittekrans asset near Hendrina, the open-cast operation. The second phase would entail going underground to dig for coal. Kangra intends reopening the Savmore/Maquasa coal mine which was closed because of the global lockdown in 2020. The sod-turning ceremony of another new mine at Mabola in the Wakkerstroom area was supposed to happen in March
MPUMALANGA BUSINESS 2021/22
32
Credit: Implats
SECTOR INSIGHT A court order has stopped a proposed new coal mine in the Wakkerstroom area. 2021, but an urgent court order put a stop to Uthaka Energy’s plans. Environmentalists have argued that the province should not have revoked the area’s protected status as important wetlands stand to be affected. The multi-year legal battle looks set to contiue. Uthaka Energy was previously known as AthaAfrica Ventures, a local subsidiary of the India-based Atha Group. Arnot coal mine has signed a contract for underground mining services with Boipelo M ining Contrac tors wor th R3.2-billion. Boipelo comprises Middelburg-based Amandla TM (51%) and Murray & Roberts Cementation (49%). South32 sold its South African Energy Coal (SAEC) business to black-owned Seriti
