Anglo Inyosi Zondagsfontein Project

27.06.08

By: Jonathan Faurie

Previously disadvantaged women and a community trust, which has been established by diversified empowerment group Inyosi Consortium, are among the interested parties who stand to benefit financially from the Zondagsfontein coal project, reports Inyosi Consortium.

In February 2007, Inyosi Consortium, which includes Lithemba Consortium, Pamodzi Coal, and WDB Investments, teamed up with coal-mining company Anglo Coal South Africa, part of the Anglo American group, to form Anglo Inyosi Coal (AIC).

During this time, Mining Weekly reported that the partnership would create a R7-billion company incorporating several Anglo Coal assets, namely Kriel Colliery, an existing mine, and the Elders, Zondagsfontein, New Largo and Heidelberg projects.

Inyosi Consortium chairperson Yoli Balfour says, “Looking at Inyosi’s shareholder base, it has broad-based beneficiary organisations where women hold in excess of 50% of the company’s equity. “Fifteen per cent of Inyosi’s shareholding has been allocated to the community trust and the benefits that flow from this shareholding will be used for socioeconomic development. “To ensure an immediate initiation of social and economic upliftment projects, an annual amount of R5-million will be distributed to broad-based beneficiaries within Inyosi.”

She adds that the main benefit that Inyosi Consortium stands to gain from the project is knowledge exchange. “The partnership of Anglo Coal and Inyosi Consortium brings together skills and experience that are critical for the sustainability and growth of AIC in the long term.”

She adds that, additionally, the Zondagsfontein project will create more than 1 000 jobs when completed and also contribute substantially to the economic development of the region through infrastructure development and by providing procurement opportunities for local businesses.

The Zondagsfontein project consists of two subprojects, namely Zondagsfontein Colliery, which Anglo Coal South Africa is developing on behalf of AIC, and the Phola coal processing plant, which Anglo Coal South Africa is developing on behalf of AIC and BHP Billiton Energy Coal South Africa.

The Zondagsfontein mine project comprises 121-million tons of run-of-mine ore reserves within the two-seam horizon of the project. In addition to the two-seam reserves, there exists a further 370 million tons of mine-able coal in situ within the fourth and fifth seams.

The Phola coal processing plant will see the construction of a 16-million-ton-a-year coal-washing facility. The plant will service coal from two mines, namely Zondagsfontein Colliery and Becsa’s Klipspruit Colliery, also in Mpumalanga.

Developmental work on the site has begun. The Phola coal processing plant is expected to go into full production in the second half of 2009
Edited by: Esmarie Swanepoel