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Leeuwpan life expansion project, South Africa

22nd May 2020

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Leeuwpan life expansion (LIFEX) project.

Location
Mpumalanga, South Africa.

Project Owner/s
Exxaro Resources.

Project Description
The Leeuwpan LIFEX optimisation project contains measured mineral resources of 54.8-million tonnes and 3.7-million tonnes in the inferred category.

The proposed project entails the development of an openpit coal mine, with a ten-year life-of-mine to produce an estimated 2.7-million tonnes a year of thermal coal for the domestic and export markets.

Potential Job Creation
Not stated.

All-in Sustaining Costs/All-in Costs
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
The cost of the project has increased from R522-million to R609-million.

Planned Start /End Date
Project close is expected in the second quarter of 2020.

Latest Developments
The project achieved first production in the second quarter of 2018.

The relocation action plan is continuing.

On  February 20, 2020, Exxaro announced its intention to divest from Exxaro Coal Central, as well as the Leeuwpan operation. This follows the conclusion of an internal portfolio review to evaluate and optimise the group's portfolio of coal operations and projects, which determined that these assets were noncore to the future objectives of Exxaro.

Key Contractors and Suppliers
Plantcor (boxcut development to a steady state for mining), JG Afrika (design of provincial and secondary roads) and Jodan Construction (construction of R50 provincial and TCM roads).

Contact Details for Project Information
Exxaro Resources GM Mpumalanga area Bram van Stelten, email bram.vanstelten@exxaro.com.
Exxaro Resources executive head: strategy and stakeholder engagement Mzila Mthenjane, tel +27 12 307 7393 or email investorrelations@exxaro.com.

 

Edited by Creamer Media Reporter

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