African Mining November 2021 | Page 23

EXCURSION •

Optimisation work to reduce capital expenditure has been a focus for this project . With the major capital expenditure for the project already completed , and all future auxiliary infrastructure expected to be funded out of cash generated by the asset , the impact on the group ’ s balance sheet will be minimised on the project ’ s path to steady state production .

In September 2021 the water and waste management project , construction of the workshop , and road intersections will all commence .

Arnot The signing of the Eskom CSA is a big boost for Arnot OpCo , its employees and Middelburg ' s neighbouring community and where it operates will result in joint-economic growth and as key component of Arnot Opco ’ s shared value model .

Arnot OpCo is half-owned by former Exxaro Resources employees , retrenched in 2015 from Arnot Mine , who then embarked on a process to acquire and re-open the mine themselves .

Arnot OpCo will supply the full coal requirement for the life of Arnot Power Station via conveyor belt which will result in transport cost savings for Eskom , who have been procuring coal trucked in by road through short-to-medium term contracts .

Moabsvelden was part of the Keaton acquisition which Wescoal concluded in 2017 .

made in its operations , to improve its production capacity , which in turn resulted in its debt level ’ s rising and putting the company ’ s balance sheet under pressure .

All images : Wescoal

Other internal projects Elandspruit , which has been a consistent performer for Wescoal , even during challenging times , commenced production at its underground section in August 2021 . The mine , which has a remaining life of mine of around four years , can produce 3.1 million tons of run-of-mine per annum and the coal from the underground section is expected to ease pressure on the current opencast operation and supplement sales from Elandspruit .

Another recent positive development for the group , was the announcement of the deployment of Acrux Sorting Technology at Wescoal operations , which will reposition the company on the cost curve . This advanced sensor-based sorting technology

However , better production performances , solid cash generation from operations and the realisation of cost savings from various initiatives that were instituted by the group in response to the tough economic environment has positioned Wescoal positively to return to profitability and meet its short-term debt re-payment obligations .

Moabsvelden Moabsvelden was part of the Keaton acquisition which Wescoal concluded in 2017 . Development work at this greenfield project commenced in June 2020 and ‘ first coal ’ was delivered to Eskom from the mine in March 2021 . It has an estimated declared reserve of 29 million tons and is expected to contribute three million tons per annum of mined coal towards Wescoal ' s production capacity , which will supply Eskom in terms of a 10-year CSA signed between the parties in 2019 .

The box cut development at Moabsvelden , which is designed as one large continuous open pit mine , is progressing well . Auxiliary infrastructure construction is also on schedule for the project , with the weighbridge , mine entrance and pollution control dam having been recently completed .

Arnot OpCo will supply the full coal requirement for the life of Arnot Power Station via conveyor belt which will result in transport cost savings for Eskom .