South African petrochemicals group, Sasol, the world’s top maker of motor fuel from coal and the country’s third-largest coal producer, has launched a new 3.5 billion rand ($423 million) shaft at its Twistdraai colliery, in a move that stretches the life of the mine beyond 2039.
The new shaft, Thubelisha, is cited in the eastern province of Mpumalanga, and will produce some 10.6 million tonnes of coal every year from 2018, when it is expected to reach full production.
The group is also bidding to invest an accumulated 14 billion rand spread over eight years in new coal mines that will take the place of older ones already nearing the end of their shelf life.
“The Thubelisha project,” Chief Executive Officer David Constable said at the launch, is part of Sasol’s “mine replacement programme, which sees us replacie 60 per cent of our operating capacity in Secunda over the next eight years.”
He added that close to 4 million tonnes of coal will be destined for exports from the new shaft, while another 3.8 million tonnes will be used to produce synthetic fuels and chemicals at the Secunda plant, the remainder comprising discard coal.
Hermann Wenhold, managing director of Sasol’s mining unit, said the company plans to apply for a mining license in the northern Waterberg coal fields.
“This is touted to become South Africa’s next key coal mining region as reserves in the Witbank area, where most mines currently are, near depletion,” he disclosed. “Our plan is to start with a relatively small mine; the coal from that mine would be destined both for exports and domestic use.”
The success of the project will be hinged on the development of the infrastructure required to link the coal fields with the southern African country’s power stations and with export terminals at the coast.
Sasol, Suid Afrikaanse Steenkool en Olie, currently produces more than 40 million tonnes of coal per year; and has taken a stake in projects under construction in Qatar (Oryx GTL), Iran (Arya Polymers) and Nigeria (Escravos GTL).
