Modern Mining September 2020

suppliers, resulting in additional logistical costs. The relocation project is therefore about getting the mine back to its original intent of supplying Matla Power Station with 10 Mt per annum until the predicted end of resource in 2042. The new, integrated shaft and the surface infra- structure including conveyors to the power plant and the ventilation shaft will come at a cost of R3,3-billion. Timeline In terms of timeline, Meyer says the project is expected to be completed by the second half of 2023. “You don’t spend this kind of money and sink secondary shafts overnight. This should have been done earlier to avoid the 4 Mt shortfall.” He says the project will significantly extend the life of mine: “A large part of the resource is situated at Mine 1, which cannot be accessed. This is why we’re currently running at a 4 Mt shortfall. The intent is to open up Mine 1 and so extend the life of mine until 2042, as originally planned.” Exxaro’s investment in the project is to manage the captive mine according to the CSA agreement, which means Eskom is responsible for the R3,3‑billion mine development bill. This sum, however, is not the full requirement. “The funds were released, but we’ll only be able to build a ‘skeleton’ of a mine, just to reach the coal. We’re still in discussion with Eskom for additional funds release to build a fully-fledged mine including all surface infrastructure and plant upgrades. This is a result of Eskom’s current capital constraints, but at least we are accessing the coal again.” Climate scenarios The company has developed climate scenarios to assess potential implications for the coal operations. These scenarios will also inform the response by

spread over many kilometres. The coal is mined at these three mines together to supply the power sta- tion with 10 Mt per year of 19,5 CV grade coal. “In 2016, we had to shut down Matla Mine 1 because of its unstable pillars. You had to travel 25 km underground to reach the mining front. From a safety point of view, the decision was to sink the shaft where the people are – at the mine front – rather than having to travel 25 km underground.” The 2016 decision to shut the mine down has resulted in a reduction in yield of 4 Mt annually to 6 Mt. “For Matla Power station to run at full capacity, it needs 10 Mt of coal a year. With the quality concerns, Mines 2 and 3 can only produce 6 Mt. This project is about returning the supply of coal to the power sta- tion to 10 Mt from this resource.” Meyer says the 4 Mt shortfall is currently being transported by road from other destinations and coal

The site for the new Matla Mine 1 being prepared.

September 2020  MODERN MINING  13