Wed Aug 17, 2011
JOHANNESBURG (Reuters) - South Africa's junior coal miners, some of them tiny producers, are facing intense pressure to consolidate, but the varying quality of their deposits and what are often poor locations will hold back a wave of tie-ups in the short term.
Below are the country's five dominant coal miners at the top of the list, followed by some of the biggest junior players:
* Anglo American Thermal Coal
The global miner produced 58.5 million tonnes of coal in South Africa in 2010. Around 60 percent of that was sold to power utility Eskom, while nearly 30 percent was exported. The remaining 10 percent went to other industrial customers.The company is working on several projects meant to boost output to 90 million tonnes. Anglo has said its expansion plans would depend on where Eskom will build new plants.
* Exxaro Resources
The diversified miner produced 46.8 million tonnes of power station, steam and coking coal in 2010. The company has several greenfield and expansion projects under way. One such project is the expansion of its Grootegeluk mine, which will supply 14.6 million tonnes to Eskom's new Medupi power plant from 2014/15.
* Sasol Mining
The unit of petrochemical group Sasol produced 42.6 million tonnes of coal during the 2010 financial year. Nearly all of that was used in Sasol's own coal-to-liquids synthetic fuels plant at Secunda in South Africa's Mpumalanga province.
* BHP Billiton
BHP Billiton Energy Coal South Africa (BECSA) produces coal for the domestic and export markets. The unit has three primary coal-mining operations: Khutala Colliery, Klipspruit Colliery and Middelburg Mine Services, located in South Africa's Witbank region in the north-eastern province of Mpumalanga. The unit produced 34.3 million tonnes of coal in the year to end-June 2011. BECSA said in February it planned to divest some of its virgin coal prospecting rights to focus on existing operations.
* Xstrata Coal
Xstrata Coal has stakes in five operations in South Africa namely Mpumalanga, iMpunzi, Southstock, Tweefontein and Goedgevonden. Production from the operations was 17.7 million tonnes for the year to the end of December 2010.
* Optimum Coal
Optimum is South Africa's 6th largest producer, with two operating mines in the Mpumalanga province and a pipeline of brownfield and greenfield projects. The miner sold 10.6 million tonnes of coal in its 2010 financial year, out of which 5.5 million went to Eskom and the rest for exports.
* Shanduka Resources
Shanduka Resources is part of the unlisted Shanduka Group, which is chaired by prominent politician-turned-businessman Cyril Ramaphosa. Shanduka Coal, through its subsidiaries, owns the Graspan, Townlands, Bankfontein, Leeuwfontein and Lakeside mines in South Africa. Coal is sold both to the domestic market and exported through the Richards Bay Coal Terminal. Shanduka Coal, 70 percent owned by global trader Glencore, has a run of mine production of 9 million tonnes.
* Kangra Coal
The company produces around 3 million tonnes of coal per year. Some 2 million tonnes are exported, with the remainder sold into the local market.
* Total Coal South Africa (TCSA)
The unit of oil major Total exports around 4 million tonnes a year of thermal coal and 1 million tonnes of coking coal. TCSA is expanding output at its Dorstfontein mine by 2 million tonnes a year. TCSA also produces coal from Forzando North and South mines and Tumelo mine.
* Coal of Africa
The junior coal miner's key projects include the Vele and Makhado coking coal projects and the Mooiplaats and Woestalleen thermal coal projects. Mooiplaats is ramping up to produce 2 million tonnes of coal per year. Vele and Makhado are expected to start production in the first half of 2012 and first half of 2013, respectively, and are expected to produce collectively an initial 1 million tonnes, ramping up to 10 million tonnes of coking coal per year. In 2010, Coal of Africa bought NuCoal Mining, which owns the Woestalleen colliery that processes around 2.5 million tonnes of coal.
* Wescoal
The junior miner currently produces 1.2 million tonnes of coal per year from its Khanyisa colliery in South Africa's Mpumalanga province. Wescoal has said it would like to expand into the export market.
* Continental Coal
The Australia-listed thermal coal producer has a portfolio of producing and advanced coal projects located in South Africa's major coal fields. Continental currently has two operating mines, Vlakvarkfontein and Ferreira, producing 2 million tonnes per year of coal for the export and domestic markets. The miner is set to start the development of two further coal mines in 2011 and is targeting a run of mine production rate of 10 million tonnes by the end of 2015.
(sourced Reuters)
JOHANNESBURG (Reuters) - South Africa's junior coal miners, some of them tiny producers, are facing intense pressure to consolidate, but the varying quality of their deposits and what are often poor locations will hold back a wave of tie-ups in the short term.
Below are the country's five dominant coal miners at the top of the list, followed by some of the biggest junior players:
* Anglo American Thermal Coal
The global miner produced 58.5 million tonnes of coal in South Africa in 2010. Around 60 percent of that was sold to power utility Eskom, while nearly 30 percent was exported. The remaining 10 percent went to other industrial customers.The company is working on several projects meant to boost output to 90 million tonnes. Anglo has said its expansion plans would depend on where Eskom will build new plants.
* Exxaro Resources
The diversified miner produced 46.8 million tonnes of power station, steam and coking coal in 2010. The company has several greenfield and expansion projects under way. One such project is the expansion of its Grootegeluk mine, which will supply 14.6 million tonnes to Eskom's new Medupi power plant from 2014/15.
* Sasol Mining
The unit of petrochemical group Sasol produced 42.6 million tonnes of coal during the 2010 financial year. Nearly all of that was used in Sasol's own coal-to-liquids synthetic fuels plant at Secunda in South Africa's Mpumalanga province.
* BHP Billiton
BHP Billiton Energy Coal South Africa (BECSA) produces coal for the domestic and export markets. The unit has three primary coal-mining operations: Khutala Colliery, Klipspruit Colliery and Middelburg Mine Services, located in South Africa's Witbank region in the north-eastern province of Mpumalanga. The unit produced 34.3 million tonnes of coal in the year to end-June 2011. BECSA said in February it planned to divest some of its virgin coal prospecting rights to focus on existing operations.
* Xstrata Coal
Xstrata Coal has stakes in five operations in South Africa namely Mpumalanga, iMpunzi, Southstock, Tweefontein and Goedgevonden. Production from the operations was 17.7 million tonnes for the year to the end of December 2010.
* Optimum Coal
Optimum is South Africa's 6th largest producer, with two operating mines in the Mpumalanga province and a pipeline of brownfield and greenfield projects. The miner sold 10.6 million tonnes of coal in its 2010 financial year, out of which 5.5 million went to Eskom and the rest for exports.
* Shanduka Resources
Shanduka Resources is part of the unlisted Shanduka Group, which is chaired by prominent politician-turned-businessman Cyril Ramaphosa. Shanduka Coal, through its subsidiaries, owns the Graspan, Townlands, Bankfontein, Leeuwfontein and Lakeside mines in South Africa. Coal is sold both to the domestic market and exported through the Richards Bay Coal Terminal. Shanduka Coal, 70 percent owned by global trader Glencore, has a run of mine production of 9 million tonnes.
* Kangra Coal
The company produces around 3 million tonnes of coal per year. Some 2 million tonnes are exported, with the remainder sold into the local market.
* Total Coal South Africa (TCSA)
The unit of oil major Total exports around 4 million tonnes a year of thermal coal and 1 million tonnes of coking coal. TCSA is expanding output at its Dorstfontein mine by 2 million tonnes a year. TCSA also produces coal from Forzando North and South mines and Tumelo mine.
* Coal of Africa
The junior coal miner's key projects include the Vele and Makhado coking coal projects and the Mooiplaats and Woestalleen thermal coal projects. Mooiplaats is ramping up to produce 2 million tonnes of coal per year. Vele and Makhado are expected to start production in the first half of 2012 and first half of 2013, respectively, and are expected to produce collectively an initial 1 million tonnes, ramping up to 10 million tonnes of coking coal per year. In 2010, Coal of Africa bought NuCoal Mining, which owns the Woestalleen colliery that processes around 2.5 million tonnes of coal.
* Wescoal
The junior miner currently produces 1.2 million tonnes of coal per year from its Khanyisa colliery in South Africa's Mpumalanga province. Wescoal has said it would like to expand into the export market.
* Continental Coal
The Australia-listed thermal coal producer has a portfolio of producing and advanced coal projects located in South Africa's major coal fields. Continental currently has two operating mines, Vlakvarkfontein and Ferreira, producing 2 million tonnes per year of coal for the export and domestic markets. The miner is set to start the development of two further coal mines in 2011 and is targeting a run of mine production rate of 10 million tonnes by the end of 2015.
(sourced Reuters)
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