The mine includes opencast mining and 2 underground mining operations with an approximate annual output of 3,200 kilo tonnes per annum (“ktpa”).
The coal being mined and processed is sold to Eskom through a medium- term supply contract. The Mine’s existing coal operation and exploration properties are situated within the Mpumalanga coal bearing areas – near Bethal.
The mine has coal resources and reserves that can support a minimum of sixteen years of mining. The asset consists of 6 farm plots of which 3 are currently operational. Green field projects for future exploration form part of the total value of 106.2 (Mt).
The mine is in the process of commissioning new production from its development and exploration assets. The Development Assets are situated in close proximity of the current operations. Coal mined and processed from these operations will be sold to Eskom, partially exported and partially sold to inland markets.
Once completed the mine will be well positioned to become a central rail loading hub for both the export market and for supply to power stations.
The mine’s current 2.4Mtpa production offers a chance to bolster production profile with the addition of quality product from the Mine’s operating and developing mines which includes both Eskom and export quality coal. Supply for the export coal market is envisaged from the Operational Colliery at a rate of 160,000 ROM tonnes per month yielding 100,000 tonnes on a washed product basis.
The investor has the oppotunity to purchase the mine for USD 130 million. For additional information, please refer to the attachment and contact us through Merar.