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Kangra Coal

Project Description

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

Kangra’s assets comprise of mining operations, RBCT throughput entitlement and various coal resources. The Maquasa West Colliery (which is currently the 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 3 years with existing bituminous coal. The Kusipongo Project area, which is covered by approved Prospecting Rights and is adjacent to Maquasa West, is currently estimated to have a total in-situ resource of 774Mb 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 will spend R519 million (in real terms) developing the mine.

Kangra currently also holds rights over the area adjacent 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 exchanged its 29.993 percent 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.

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