Mon, Mar07, 2011, ByTerence Creamer
JOHANNESBURG (miningweekly.com)- Energy and chemicals producer Sasol confirmed on Monday that it had set aside R8-billion for its coal-mine replacement programmes, which had been designed to ensure continued supply to its coal-to-liquids facility at Secunda, as well as to sustain exports.
The group, which is the world’s largest producer of motor fuels and chemicals from coal, had allocated more than R3-billion for the new export coal mine to replace the depleting Twisdraai operation.
The Thubelisha export coal mine, already under construction, would also supply the JSE-listed group’s synfuels factory in Secunda, in Mpumalanga.
The coal-mining unit, reported operating profit of R705-million for the six months to December 31, 2010, a 315% positive turnaround on the corresponding period a year earlier.
However, once a R565-million share-based expense relating to the Ixia Coal black economic–empowerment transaction was included, its operating profit contribution fell to R140-million, which was 18% down on the prior period-on-period.
Production and sales volumes also decreased in line with a planned Sasol synfuels outage.
The larger group reported 21% rise in earnings attributable to shareholders of R7,6-billion for the interim period, with operating profit rising to R12-billion, on the back of higher average crude oil and chemicals prices.
Sasol had stated previously that it planned to retain its export coal business, but that it would require a new mine in order to maintain volumes. Both Twistdraai and Brandspruit would soon be mined out, while Thubelisha and Impumulelo were scheduled to replace them.
The first-phase expansion programme at Secunda, involving R7,8-billion, would be fed by natural gas from Mozambique, but further growth phases might seek to use additional coal, including coal fines.
Sasol said that it would spend R23-billion on capital projects this financial year and revealed that it would spend R31-billion during the 2012 financial period. Edited by Creamer Media Reporter
Tags: The Thubelisha export coal mine, Ixia Coal, Mozambique,
The group, which is the world’s largest producer of motor fuels and chemicals from coal, had allocated more than R3-billion for the new export coal mine to replace the depleting Twisdraai operation.
The Thubelisha export coal mine, already under construction, would also supply the JSE-listed group’s synfuels factory in Secunda, in Mpumalanga.
The coal-mining unit, reported operating profit of R705-million for the six months to December 31, 2010, a 315% positive turnaround on the corresponding period a year earlier.
However, once a R565-million share-based expense relating to the Ixia Coal black economic–empowerment transaction was included, its operating profit contribution fell to R140-million, which was 18% down on the prior period-on-period.
Production and sales volumes also decreased in line with a planned Sasol synfuels outage.
The larger group reported 21% rise in earnings attributable to shareholders of R7,6-billion for the interim period, with operating profit rising to R12-billion, on the back of higher average crude oil and chemicals prices.
Sasol had stated previously that it planned to retain its export coal business, but that it would require a new mine in order to maintain volumes. Both Twistdraai and Brandspruit would soon be mined out, while Thubelisha and Impumulelo were scheduled to replace them.
The first-phase expansion programme at Secunda, involving R7,8-billion, would be fed by natural gas from Mozambique, but further growth phases might seek to use additional coal, including coal fines.
Sasol said that it would spend R23-billion on capital projects this financial year and revealed that it would spend R31-billion during the 2012 financial period. Edited by Creamer Media Reporter
Tags: The Thubelisha export coal mine, Ixia Coal, Mozambique,
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