Sasol ramping up output at Shondoni coal mine

Sasol Mining’s R5.5bn Shondoni mine will complete its second phase of development in September to ramp up to full production of 10.5-million tonnes of coal a year, says senior vice-president Lucky Kgatle.

This is a significant investment, showing Sasol’s commitment to long-term growth in the South African economy to 2050 despite short-term fluctuations in growth trends, Kgatle says.

 Sasol Mining produces about 40-million tonnes of coal a year for synfuels and chemicals from five mines around Secunda. It also produces 10-million run-of-mine tonnes, of which about 3-million to 3.5-million tonnes is washed for export through Richards Bay Coal Terminal and the remainder, the middlings, is used for synfuels.

Another 2-million tonnes a year is produced at a sixth coal mine near Sasolburg.

In 2009, Sasol launched a R14bn mine replacement programme to assure supply of coal for the future. It consists of four projects: transitioning Middelbult into a new mine called Shondoni, Brandspruit to Impumelelo and Twistdraai to Thubelisha. The Syferfontein mine is being extended into newly acquired reserves in the Tweedraai section.

The initial budget was R15.79bn, but some projects are coming in below budget.

Sasol Mining is 80%-owned by Sasol and the remainder by WIPHold, Mining Women Investments, communities and employees.

Kgatle said the reason for the investment programme was that the Twistdraai, Brandspruit, Middelbult and Syferfontein reserves were reaching the end of their lives, representing about 60% of total capacity.

Thubelisha, now complete, will produce 10.5-million tonnes a year at full production and cost R3.4bn. Impumelelo will achieve 10.5-million tonnes a year at the completion of phase two in June 2019. Its budget is R5.6bn. Tweedraai will produce 2.5-million tonnes a year at a budgeted cost of R1.4bn. Its phase two was completed in September 2015.

Twistdraai will be fully transitioned to Thubelisha by the end of this year. Phase two of Impumelelo is under way.

At Shondoni, materials handling has been commissioned and decline shaft sinking was completed in April. Tweedraai has completed shaft access development and was delivered on time and on budget.

More than 90% of the 3,300 workforce is South African.

Kgatle said rehabilitation was an important aspect of the programme, involving demolition of buildings and vegetation.