Anglo and Eyesizwe in joint coal venture
August 17, 2004
Anglo American and Eyesizwe Coal, the largest black-owned and managed coal mining company in South Africa, entered into a joint coal mining agreement on Tuesday.
"Anglo Coal and Eyesizwe are to enter into a 50:50 joint venture to mine the Arnot North coal reserves, situated 30km east of Middelburg in Mpumalanga," the companies said in a statement on Tuesday.
The mining operation, to be known as Mafube - a South Sotho word meaning "the dawn" or "new beginning" - would initially cost about R26-million to set up.
Coal production was expected to start in July.
"Initially the mine will consist of an opencast operation and will employ contractors to supply 100 000 tons of coal per month to Eskom's Arnot power station," the statement read.
Commenting on the deal, Minerals and Energy Minister Phumzile Mlambo-Ngcuka said: "South Africa relies heavily on coal to meet its energy needs and has still to play a very important role in the future of our economy... The coal industry is now poised to grow and become more competitive than ever before."
She said only nine percent of the coal industry was economically empowered up until 2003, but this percentage was now "growing fast".
Her department was "forecasting an increase to at least 30 percent by the end of 2004."
The two parties also planned to conduct a feasibility study to establish a R1,6-billion opencast mine on the Mafube coal reserves.
The study - which should be completed mid-2005 - would investigate the possibility of establishing a larger opencast mine and coal preparation plant on the reserves.
This operation, expected to last at least 20 years, would produce between 2,5 and three million tons per annum of coal for export through the Richards Bay coal terminal.
"This will be in addition to meeting the ongoing obligation of the partners to supply 1,2 million tons per annum to the Arnot power station," the companies said. - Sapa
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