Exxaro Partners With Sasol Mining in JV to Supply Potential Mafutha CTL Plant in South Africa
Exxaro Resources Limited, a South African-based mining group, has entered into a prospecting joint venture agreement with Sasol Mining Proprietary Limited (Sasol Mining) for the development of a new coal mine to supply Sasol’s potential new inland coal-to-liquids (CTL) project.
Project Mafutha is an investigation into the development of another CTL project in South Africa and is envisaged to be located in the north-western part of the Limpopo province due to the substantial coal reserves in the Waterberg region.
Should the project proceed, it will require a new coal mine to produce feedstock for the 80,000 barrels-a-day CTL complex. The development would contribute to meeting the growing shortfall in South Africa’s domestic fuel production, most notably in the installed capacity for producing diesel and gasoline. In recent years, South Africa has been a regular importer of refined fuels to supplement local production.
Exxaro expects that such a mine would require an opencast truck-and-shovel extraction method, an area in which Exxaro has beneficial expertise.
The development of the new mine is in the pre-feasibility stage with the mining of a bulk sample planned for before the end of 2009. It is expected that some 170,000 tonnes of coal will be mined for large-scale testing at the Sasol Synfuels Secunda plant.
Exxaro’s participation in the joint venture for the new mine is subject to the applicable regulatory approvals, the company’s continued interest in the project and development of the CTL and associated Mafutha coal mine.
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