Modern Mining July 2016

COAL

Elandspruit supercharges Wescoal

With its new Elandspruit opencast mine up and running and meeting its production targets, junior JSE-listed coal miner and trader Wescoal has recently reported the best results in its history with headline earnings per share increasing by 76,1 % in the year to 31 March 2016. Modern Mining’s Arthur Tassell recently visited Elandspruit – which is just 5 kmwest of Middelburg – and also spoke to Wescoal Holdings CEOWaheed Sulaiman, who explained that the group’s vision – in respect of its mining division – was to become an 8 Mt/a ROM coal producer.

A lthough Wescoal’s origins lie in coal trading (it was incorporat- ed in 1996 under the Chandler name to purchase the coal trad- ing business and other assets of the Chandler family), today the major part of its earnings (79 %) come from coal mining (al- though the trading division accounts for 61 % of revenue). It first entered the mining field in 2009 when it acquired Khanyisa near Kendal with in-situ reserves of 4,5 Mt, in 2013 adding a second mine, Intibane, in the same area, to its operating portfolio. While both Khanyisa and Intibane have performed well for Wescoal, neither is a par- ticularly big nor long-life operation and

Wescoal CEOWaheed Sulaiman.

Elandspruit is clearly the mine which will underpin the group’s future. Says Sulaiman: “Elandspruit has a reserve of plus 34 Mt and a life of mine of approximately 15 years at a min- ing rate of 2 Mt/a. This now ranks as Wescoal Mining’s prime asset. Its effect on the group was very evident in the second half of FY2016, which saw the mining division putting in an incredibly strong performance.” Wescoal’s ROM production during FY2016 was 1,85 Mt from all three mines, with Elandspruit contributing 1 214 kt, Intibane

Dutch Botes (left) CEO of Wescoal Mining, with Wescoal’s Processing Manager, Jaap Kruger.

22  MODERN MINING  July 2016