Sasol to complete its coal mine replacement project next year

Published May 7, 2015

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Dineo Faku

PETRO-chemicals producer Sasol said its R15 billion coal mine replacement project in Secunda, Mpumalanga, would be completed next year.

Sasol is replacing ageing mines that were built in the 1980s with three new underground mines that are set to maintain the firm’s coal mining production of 40 million tons a year.

It aims to replace 60 percent of Secunda’s coal producing capacity.

“You cannot find cheaper coal by buying from sources outside of Secunda’s underground mines,” Peter Steenkamp, Sasol Mining’s senior vice-president, told journalists during a visit to Impumelelo colliery in Secunda yesterday.

The replacement project was a major boost for local mining investments, said Steenkamp.

“You don’t see any new mines in South Africa. This replacement project is a great investment in local mining,” he added.

The R3bn Ithubelisha colliery has been up and running since 2012 when it replaced Twistdraai, and was the first of the three to come on line.

Sasol is constructing the Shondoni colliery to replace the old Middlebult mine for R5bn, and will produce about 10.5 million tons a year from the second half of this year.

The R4.7bn Impumelelo mine, which replaced the Brandspruit colliery, is ramping up production and will deliver up 10.5 million tons of capacity a year. The original cost of the Impumelelo mine was R4.3bn.

Sasol has also spent R1.4bn on the Syferfontein coal mine.

As part of the social labour plan, Sasol has spent R417 million on building houses, roads and community centres.

The group has also spent R275m on other project-related capex for the main projects.

The projects have had challenges including a strike by sub-contractors at Shondoni over wages and a fatality at Impumelelo last year.

The project boasts a 28km- conveyor belt, the longest single flight conveyor belt in the southern hemisphere, that will transport coal from Impumelelo to nearby facilities for treatment.

The coal will be produced for its synfuels division, and about 3 million tons of high quality coal is to be exported.

About 3 000 jobs will be retained as a result of the project and another 1 000 jobs were created during the construction phase.

Employees from the ageing mines that face closure have been redeployed to the new mines.

Lawyer Richard Spoor has instituted a civil claim against the company for lung cancer.

Alex Anderson, a Sasol spokesman, said yesterday that: “A group of 22 current and former employees of Sasol Mining have submitted a civil claim through legal representatives in relation to illnesses contracted allegedly during their employ with the company. We are currently assessing the lawsuit.”

“While we cannot provide further comment as the legal process is underway, Sasol Mining takes the protection of the health and safety of our employees and the employees of service providers very seriously. Sasol Mining continuously adheres to the Mine Health and Safety Act, as well as all other applicable legislation.”

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