In the stope
Vuslat Bayoglu
grows in stature
Vuslat Bayoglu is optimistic about the future of coal
mining in South Africa, writes Leon Louw.
I
n fewer than 15 years Canyon Coal has
become a prime mover in the South
African coal mining space, and Vuslat
Bayoglu, the company’s founder and
executive chairman, believes the coal sector
still has a lot to offer. Bayoglu regards South
Africa as a top mining destination and has
invested heavily in the country’s abundant
Vuslat, you are originally from Turkey.
When did you establish yourself in
South Africa and how did you become
involved in the mining industry?
coal deposits. Canyon Coal has five operating
mines, and more projects in the pipeline.
Bayoglu is also the managing director of
investment company Menar Capital and
a director of newly established Sibambene
Coal. Mining Mirror asked Bayoglu to tell us
a bit more about himself and the business of
coal mining.
I was looking for business opportunities
and landed up in Cape Town in 2001.
After two years in Cape Town, I decided
that Johannesburg was a better place for an
entrepreneur and in Johannesburg my partner
and I started looking for opportunities in
mining, specifically coal mining.
We established a coal trading company
and then applied for a number of prospecting
rights. We started drilling and not long after
that found coal in Mpumalanga. Coal deposits
in these areas of South Africa are shallow,
and drilling is not that costly. We developed
Hakhano Colliery close to Middelburg, which
produces Richards Bay export quality coal.
Meanwhile, the company invested in
exploration and considered possible acquisition
opportunities to establish a sustainable pipeline
of projects. We applied for and then acquired
the prospecting rights for Phalanndwa, near
Delmas in Mpumalanga, and started mining in
October 2010.
Phalanndwa became fully operational in
2013 and the business grew organically. In
2016 we bought Zululand Anthracite Colliery
(ZAC) from Rio Tinto, and in 2018 closed
the deal to buy Kangra Coal from Spanish
company Union Fenosa. Through this R560-
million deal we became a shareholder in the
Richards Bay Coal Terminal (RBCT).
Vuslat Bayoglu, founder and executive chairman of Canyon Coal.
[36] MINING MIRROR JUNE 2019
Did you previously have any
experience in the coal mining
industry?
No, I had no experience in the coal mining
sector. When Canyon Coal was established
initially, we sold our product to Turkey. Being
from Turkey I knew that the country was
importing coal as it didn’t have enough of its
own deposits. They have low quality lignite
deposits which are used in ageing power
stations that are nearing the end of their lives.
Steam coal is limited and occurs in the north
of the country, but the deposits are deep and
difficult to extract.
Turkey thus relies heavily on coal and gas
from Russia and has, in fact, been importing
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