Name and Location
Shondoni coal project, Mpumalanga, South Africa.

Client
Sasol Mining.

Project Description
The project involves the construction of a new mine to replace output from Sasol’s mature Middelbult coal mine, which is nearing the end of its useful life. The project is one of four replacement projects that Sasol is undertaking.

The extractable reserves at Shondoni are estimated at about 190-million tons, which translates into an operating life of 20 years.

The mine will deliver 10.5-million tons a year of streaming coal when in full production; it will also include surface infrastructure and 21 km overland conveyor system.

The move to develop the mine forms part of what Sasol has previously described as an “intense capital replacement” programme involving four significant projects – Thubelisha, Impumelelo, Shondoni and Tweedraai – which will replace the long-serving Twistdraai, Brandspruit, Middelbult and part of the Syferfontein operations respectively.

Net Present Value/Internal Rate of Return
Not stated.

Value
R3.09-billion.

Duration
The project is scheduled for completion in the second half of 2015, with the decline shaft scheduled for completion in mid-2016.

Latest Developments
The Shondoni mine is progressing steadily.

There were project delays during the year ended June 30, 2015, owing to a slower than expected shaft sinking process and a mining contract having to deal with a four-month labour dispute.

The project is now expected to be operation in the first half of the 2016 financial year. The project is expected to be delivered within budget.

Key Contracts and Suppliers
WorleyParsons (engineering, procurement and construction); Sandvik Mining (materials handling systems); Aveng Mining (shaft sinking); Aveng Grinaker-LTA (building infrastructure) and Wilson Bayly Holmes-Ovcon, or WBHO (road and earthworks).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sasol group media manager Alex Anderson, tel + +27 71 600 9605 or email alex.anderson@sasol.com.
WorleyParsons (Secunda), tel +27 17 631 3447 or fax +27 17 631 3648.
Sandvik Mining Systems head of mining systems Manfred Schaffer, tel +43 316 902 62 65 10.
Aveng Mining, tel +27 11 821 1800.
Aveng Grinaker-LTA, tel +27 11 578 6000.
WBHO, tel +27 11 321 7200, fax +27 11 887 4364 or email wbho@wbho.co.za.