Modern Mining May 2023

on each of its operations who oversee the daily operations and its contractor operated model. According to Rughubir, Ndalamo’s operational methodology targets the extraction of maximum value out of its operations. “Our operations are also nimble enough to adapt to changing markets and changes in demand. Our management team and head office team are small enough that decisions are made quickly, and our teams have a full suite of expertise across the scope of mining.” Environmental, social, and corporate governance (ESG) Ndalamo will, for the first time, publish a comprehen sive ESG report in Q3 of this year. This is a significant milestone for for company, which demonstrates not only its intent to responsibly disclose on ESG, but its intent of improving on ESG related matters. “It is important to note that it is a voluntary pub lication as Ndalamo is not a listed entity where mandatory disclosure is required. This demonstrates our commitment to our ESG journey,” says Rughubir. Ndalamo Resources is currently completing a baseline study on its ESG metrics across the entire group. “We have initiated our energy business that will target decarbonisation opportunities across opera tions. We will investigate technologies and digital offerings that have high decarbonisation potential and have assembled an experienced internal team to drive these initiatives,” adds Dajee. Challenges facing the industry With the mining sector’s performance largely stymied by a logistics crisis driven by poor performance of Transnet Freight Rail and Transnet Port Terminals, Ndalamo Resources has focused on Free on Truck (FOT) sales instead of free on board (FOB) sales. However, this has meant the company has had to forgo on huge profits for the business. As such, Ndalamo is focusing on developing its own logistics

and marketing department, which will help it elimi nate the need for third party assistance. In the meantime, the company is collaborating with trad ers who have logistics solutions for a full value-chain service. Further to this, given the unpredictability of international coal prices, the company has inked long-term domestic coal agreements with Eskom. “By creating a stable domestic product base, we are able to weather falling international coal prices,” notes Dajee. A further challenge plaquing industry remains coal theft and coal security, which has led to Ndalamo Resources investing in advanced track ing and remote monitoring of in- and outbound road transporters, which has significantly reduced pilferage. “As Ndalamo Resources, we are very conscious of our responsibility, as a black South African com pany, to support the energy needs of South Africa. We understand that an orderly energy transition is required and hence having a reliable and sustain able coal operation for the next decade or so is vital, both for the country’s energy security and energy stability. That remains the greatest motivation for Ndalamo to remain invested in the coal sector for as long as required,” concludes Rughubir. 

The mainstay for the company remains its three coal operations, namely North Block Complex, New Clydesdale Colliery and Ubuntu Colliery.

Ndalamo Resources  Ndalamo Resources was established in February 2013.

 Ndalamo Energy is positioned as a credible 100% BEE energy player of choice, leveraging off its current operations and strong balance sheet, strong market networks and industry partners, and a skilled and experi enced team.

Ndalamo’s coal product volumes

Operation

Export

Domestic

NBC NCC

40 000 RB1 pm & 30 000 RB3 pm 200 000 pm 55 000 RB1 pm & 20 000 RB3 pm 135 000 pm

Ubuntu

None

100 000 pm

May 2023  MODERN MINING  23