Sasol Mining has confirmed that its R14-billion mine replacement programme, which includes the development of the Mpumalanga-based Impumelelo and Shondoni collieries, remains on track for completion within budget and on schedule.

The Sasol subsidiary expected Impumelelo to reach beneficial operation in the first half of next year, while the Shondoni coal mine was expected to be coal-productive in the latter half of next year.

Once at full production, Shondoni will deliver 10.5-million tons a year of streaming coal, while Impumelelo will initially produce 8.5-million tons a year, building up to 10.5-million tons a year of coal.

“An external funding facility of R2.5-billion for these projects has been secured, and the first drawdowns have taken place,” Sasol acting CFO Paul Victor added in a recent update to shareholders.

Mining Weekly has reported previously that the sweeping replacement programme would see the coal miner, which produced 40-million tons of coal a year from one of the world’s largest underground coal mining complexes, replacing 60% of its coal production through four projects currently under way in Mpumalanga.

The four projects – Thubelisha, Impumelelo, Shondoni and Tweedraai – will replace the long-serving Twistdraai, Brandspruit, Middelbult and part of the Syferfontein operations.

Thubelisha, which is nearing completion and in production, will ramp up in the next two years to extend the life of the Twistdraai colliery to beyond 2043, while the far smaller Tweedraai project will replace part of the Syferfontein mine as an opencast operation.

Tweedraai will pass through Syferfontein’s high wall and incorporate the large 93-million-ton Block Four, which Sasol Mining is acquiring from Anglo American Thermal Coal and BHP Billiton and which will eventually have six underground production sections.

Sasol Mining will be required to take a decision on the next replacement mine in 2024, which is likely to involve Impumelelo’s remain- ing southern phases.

Sasol Mining’s operating profit in the 2013 financial year was R2.2-billion, 3% down on the previous financial year owing to lower export prices and higher operating costs.