Name of the Project
Shondoni coal project.

Location
Secunda, Mpumalanga, South Africa.

Client
Sasol Mining.

Project Description
The Secunda area remains one of the largest underground coal complexes in the world.

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

The mine is expected to produce 9.2-million tons of coal a year using a conveyor system that will transport the coal using a 21 km conveyor belt to Sasol Coal Supply (SCS). The single-belt, curved overland conveyor is one of the longest conveyor belts in the industry and one of the last key elements that needs to become operational before underground coal can be fed into the 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.

Jobs to be Created
Occupation by production personnel started in April 2016 and will ramp up to 1 190 site-based mining employees working in three eight-hour shifts.

Net Present Value/Internal Rate of Return
Not stated.

Value
The Shondoni mining project is part of a R14-billion project undertaken by Sasol Mining to replace three of its ageing coal mines in the Secunda area. On completion of the project, the three mines will contribute to the supply of 42-million tons of coal a year to Sasol Synfuels.

Duration
The project is expected to be completed in the second half of 2017.

Latest Developments
The Shondoni mine, on which construction work started in 2012, is transitioning from the “old mine into the new mine” after reaching another milestone in April this year, when the decline shaft sinking was completed, Sasol senior VP Lucky Kgatle has said.

Construction of the Shondoni mine was about 94% complete in June this year, with the Phase 2 underground infrastructure expected to be fully completed on schedule by September.

Phase 1 of the project was completed in August 2016 and phase 2 is scheduled to be completed in September 2017. .

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?
The project is proceeding as scheduled. The project has an approved budget of R5.5-billion. The project is expected to be completed within budget at R5.2-billion.

Contact Details for Project Information
Sasol group media manager Alex Anderson, tel +27 71 600 9605 or email alex.anderson@sasol.com.