Mining Commences at Udumo Shaft
PRESS RELEASE
14 February 2022, Johannesburg
MINING COMMENCES AT UDUMO SHAFT
New chapter at Kangra with the commencement of mining at Kusipongo
Coal mining company Kangra, located in Saul Mkhizeville, Mpumalanga started mining first coal from its new underground Udumo adit (also known as Tweyfelhoek mine) on 9 February 2022. The adit forms part of the Kusipongo resource located to the west of the existing mining operations of Kangra. It has a coal reserve of around 41.9 million tons and could extend the life of the mine by more than 20 years.
Kangra is a subsidiary of private investment company Menar and employs 549 people including contractors. The company is investing in the development of new mining areas as part of the extension of the life of mine.
Menar MD Vuslat Bayoglu said he was excited about the new developments as they allowed Kangra to secure jobs for mostly local people and to take advantage of the current favourable commodity cycle. “Our Kangra teams have worked hard to ensure that we save jobs while expanding the operation in a sustainable manner. It has not been easy, but we wish to express our appreciation of regulators who have acknowledged mining’s contribution to the economy of our country. We would like to continue working with all regulatory authorities to expand Kangra operations and create new jobs,” he said.
Kangra General Manager Pierre Louw explained that the resource at Maquasa East and West operations, which have been in operation since 1996, have been depleted and the next phase in the life of mine of Kangra has commenced with the commencement of mining of the Kusipongo reserve.
Udumo consists of an opencast adit where access will be gained to the rest of the reserves for underground mining. Udumo has met all the regulatory requirements. The company has allocated a capital budget of R153.6 million to establish the adit.
The access road to the Adit was completed on 13 September 2021 and the powerlines and the water reticulation connections were completed by mid-December 2021. With a mixture of both low and high volatility coal, the Kusipongo reserve will be mined from three sections using a board and pillar method. Kangra is targeting a production rate of 1.44 million tons per annum from the underground mining sections and 360 000 tons per year from the available opencast areas for the duration of the life of mine.
Once mined from the various adits, the coal will be trucked/conveyed to the Maquasa East adit. From here, it will be washed and trucked to the Panbult Rail Siding, which is around 30 km from the mine where it will be railed to the Richards Bay Coal Terminal (RBCT), in KwaZulu-Natal.“The extension of the life of the mine of Kangra is critical for local communities that derive employment and business opportunities from the mine,” Louw concludes.
About Kangra
Kangra’s washabilities allows it to produce, a range of thermal coal products for both international and domestic customers. The majority of Kangra’s coal is exported through Richards Bay Coal Terminal for power producers. Kangra’s consistent quality and secure production have made it a highly sought-after supplier to key international markets. Kangra’s location, being close to Richards Bay, positions it well for both exports and to service the local South African markets. Kangra holds a 1.94% interest in Richards Bay Coal Terminal –the world’s second-largest coal export terminal –which allows it to export over 1.6 million tons of coal per annum.
At its peak, Kangra, which was acquired from Madrid-listed energy company Naturgy in 2018, produced over 2 million tonnes per annum. The remaining life of the current mine inclusive of the new developments is over 20 years.
For more information, contact:
Menar Corporate Communication Department: Siphiwe Tame
Tel: +27 11 783 7996 | Email: pr@menar.com