+27 11 061 2000

Kangra Coal

Project Description

Kangra’s main business comprises the mining and processing of thermal coal, via underground and opencast mining, both exported and sold locally.

Kangra’s assets comprise of mining operations, RBCT throughput entitlement and various coal resources. The Maquasa West Colliery (which is currently Kangra’s only coal producing operation) is situated near Piet Retief, while the Welgedacht mine is situated in Utrecht, near Newcastle, in KwaZulu Natal. The Welgedacht mine is not operating and is currently under care and maintenance (with rehabilitation in progress).

The Maquasa West operation has a proven remaining mine life of approximately three years with existing bituminous coal. The Kusipongo Project area, which is covered by approved Prospecting Rights and is next to Maquasa West, is currently estimated to have a total in-situ resource of 774Mt A mining plan has been developed for a total of 239.6Mt of in-situ resources.

Kangra has delayed the development process of the Kusipongo resource. From FY17 to FY21, the company was expected to spend R519 million (in real terms) developing the mine.

Kangra currently also holds rights over the area next to the Kusipongo mine area, which has an indicated total in-situ resource of 538Mt, 25Mt of which is SAMREC compliant.

In June 2012, Shanduka Coal, through Izimbiwa Coal, exchanged its 29.993% equity shareholding in Kangra for additional shares in Shanduka Coal. The transaction resulted in Shanduka Coal holding a 50.01 percent interest in Shanduka Coal with Glencore holding 49.99%. Through Shanduka Coal Investments, Phembani has an effective -15% interest in Kangra.

Tags