Modern Mining August 2019

MINING News

Masama coal mine approaches steady-state production

Minergy Limited, the coal mining and trading company which owns 100 % of the 390-Mt Masama coal project in the Mmamabula coalfield in Botswana, reports that the new mine will reach steady-state production in September this year. “We have come such a long way and are pleased with developments at the mine site,” commented Morné du Plessis, Minergy’s CEO. “We are extremely excited about the future of the project, our ability to supply coal into the region, the highly experienced team responsible for execut- ing the plan, as well as our capacity to contribute towards a viable coal sector in Botswana.” Minergy, which is listed on the Botswana Stock Exchange (BSE), previously reported in its interim results announcement on 29 March 2019 that mine infrastructure, includ- ing extensive civil work, power reticulation, water reticulation systems, access roads, weighbridge offices and workshops, had been completed. The mine boxcut was ahead of schedule.

In terms of the mining operation, in excess of 2,2 million m 3 of overburden material was moved by July 2019 by the opencast mining contractor, Jarcon Opencast Mining. “During early July 2019, the plant had successfully passed both electricity con- nectivity and leak tests and we are pleased to report that it is now fully operational, producing saleable coal,” said du Plessis. He added that additions to the plant were ongoing to improve efficiencies and pro- vide consistency in both product quality and sizing. “The Masama coal project has an excel- lent quality coal product within sustainable coal seams and, as such, has received sig- nificant interest from regional companies. Minergy has successfully moved product to South Africa and Namibia,” he said. The smaller Botswana market is also being tar- geted and Minergy believes it will be able to provide competitive pricing. As a norm, the customer will be respon- sible for logistics of the coal with Minergy

focusing on its core strength, which is the marketing of coal. “From our interactions with sub-contractors moving coal on behalf of our customers, they have experienced smooth border transitions. The logistics companies are highly efficient and ensure all paperwork is in place and their agents do pre-clearance at their offices at the bor- der posts,” stated du Plessis. The company is not currently focused on supplying coal to the power genera- tion market but points out that a business case is developing with the shortfall of coal experienced by the South African power utility, Eskom. “We have certain coal quali- ties that are perfect for power producers and this can easily be accessed and utilised in the future,” du Plessis explained. Minergy has extracted roughly 39 000 tons of coal to date. In excess of 340 000 tons are exposed in the pit, which only needs to be blasted and put through the plant. This equates to roughly three months of feedstock. According to the mine plans, from August this year it is envisaged that

The Masama processing plant (photo: Philip Mostert Photography).

6  MODERN MINING  August 2019