Moabsvelden coal project, South Africa
Name of the Project
Moabsvelden coal project.
Location
The project is located in Mpumalanga, South Africa.
Project Owner/s
Wescoal.
Project Description
The Moabsvelden project will supply South Africa’s State-owned power utility Eskom’s Kusile power station with about three-million tonnes of coal a year for about ten years.
The first phase of the project involves the development of the boxcut and auxiliary infrastructure to start mining operations and produce a run-of-mine (RoM) product.
Phase 2 will take the project to steady state of 200 000 t of RoM a month and includes a coal handling and processing plant.
To reach the full Eskom contractual supply of three-million tonnes of coal sales a year, a third and final phase of the project will be required and this will involve the development of the VG6 underground project.
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
Phase 1 is estimated at between R250-million and R290-million.
Capital expenditure (capex) for Phase 2 is expected to be similar to that of Phase 1.
Timing and incremental capex for Phase 3 will be confirmed in due course.
Planned Start/End Date
The first coal and delivery to Eskom is scheduled for early in mid-2020, ramping up to full target production of 200 000 t of RoM a month over 18 months.
Latest Developments
Wescoal reported in February 2020 that the implementation of the project was progressing as planned and that a contract miner had been appointed following an extensive selection process. It noted that the appointment remained subject to the conclusion and signature of a contract mining agreement, which was at an advanced stage.
Key Contracts and Suppliers
None stated.
Contact Details for Project Information
Wescoal, tel +27 11 049 8611 or email info@wescoal.co.za.
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