Coal of Africa and the Makhado Mine project
The Makhado mine in the Limpopo Province of South Africa, has been regarded as the “flashpoint for tensions of South Africa’s pro-coal policies.”
Owned by Coal of Africa Ltd, the project clashes with South Africa’s pledge to lower its carbon emissions by 42 percent by 2025, with some critics going as far as to say that things have reached “tipping point.”
Here’s what we know about the Makhado mine project:
The Makhado Project is located in the Makhado Municipality, in the magisterial district of Vhembe in the Limpopo Province of South Africa. The nearest town, Makhado (Louis Trichardt) is situated 35 km south of the project area, with Musina town located 50km to the north of the project area.
The project will produce hard coking and thermal coal through open cast mining. There are currently 172.73 Mt Run of Mine (ROM) reserves in situ which will be mined over the life of mine of 16 years, expected to be mined at an average rate of 12.6Mtpa ROM. There is the potential for expansion underground. The Reserve and Resource statements have been independently reviewed by Venmyn Deloitte. At steady state production, 2.3mtpa hard coking coal and 3.2mtpa thermal coal will be produced.
This represents CoAL’s first project within the Soutpansberg Coalfield area, with the long-term goal to becoming a significant global coking coal producer. In 2013, studies demonstrated the project’s ability to produce around 2.3Mt of hard coking coal and 3.2Mt of thermal coal annually.
The Makhado Project benefits from excellent existing infrastructure with respect to rail, road, power and port allocation.
• Electricity supply is being secured from existing Eskom infrastructure
• Accessible via existing road network, the coal will be transported to the domestic and export markets by rail, with access to the national rail network through the construction of a 22km rail loop.
The project is Owned by Coal of Africa Limited (CoAL), a South African publicly listed, emerging developer of hard coking and thermal coal resources.
South Africa currently produces 3.7 percent of the global output of coal. The country itself has around 30 billion tonnes of coal, which equates to more than one hundred years’ supply.
Through construction and operation, more than 60 percent of jobs will be filled by people from the local communities. This will be over 3,000 jobs.
The company will also train and develop over 1,000 people at the Makhado Centre of Learning in workplace readiness programmes, digital training, entrepreneurship training and the reduction of imports, and improvement in balance of payments and more.
The January 2017 issue of Mining Global is live!
Get in touch with our editor Dale Benton at [email protected]
Mining Profile: Gary Nagle, CEO, Glencore
Gary Nagle has spent his career in mining, across two decades, with Glencore – the Anglo-Swiss metals and mining company with a diverse global portfolio. Nagle is a one company man who has experienced the journey of the resources industry from boots on the ground to the boardroom. He will succeed Ivan Glasenberg as Glencore’s CEO in July 2021
Gary Nagle was born in South Africa in 1975 where he earned degrees in commerce and accounting from the University of Witwatersrand, before qualifying as a chartered accountant in 1999. Nagle joined Glencore in 2000 as an asset manager in the coal department. His rise was swift; by 2007 he was named chief executive of the company’s Colombian coal operation, Prodeco.
Following the acquisition of Xstrata in 2013, Nagle moved to run the company’s South Africa-focused alloy assets, before being named head of the company’s global coal assets portfolio in 2018
Building his career by rising through the ranks of Glencore’s coal department Nagles was considered the most likely to succeed Glasenberg due to his asset-focus; mining accounts for a growing share of Glencore’s revenue as it moves away from its origins as a pure trader.
Glencore’s Chairman, Tony Hayward, commented on the appointment: “Gary Nagle has held senior roles in coal and ferroalloys in Colombia, South Africa and Australia. He has been on the Board’s radar for more than several years and was selected following a succession process overseen by the Board. We are confident that he has the right skill set and qualities to lead the Glencore of tomorrow.”
Ivan Glasenberg is retiring from his role as CEO after nearly 20 years at the helm of Glencore which saw him complete one of the largest mining mergers in history, with Xstrata. Looking back on his time at Glencore, the world’s largest commodities trader, Glasenberg reflected: “I am proud of the great company that we have built. Together, we have created one of the world’s largest diversified miners and marketers of commodities. Today, our diversified portfolio uniquely positions us to play an essential role in the global transition to a low-carbon economy.”
Glencore has announced plans to reach net-zero emissions by 2050 by reducing its direct and indirect carbon footprint by 40% by 2035.
Glasenberg has served as mentor to Nagle who has followed a similar career path at Glencore rising to the role of CEO via heading up the company’s global coal business.
“I have worked with Gary since he joined the company twenty years ago,” recalled Glasenberg. “I have always regarded it as a critical part of my job to develop the next generation of leadership at Glencore and I am proud of the strong leadership team that we developed from which we were able to select Gary. I am confident that his leadership, along with the support of the management team, will enable Glencore to take advantage of the opportunities that lie ahead and be a strong custodian for my shareholding in the company.”
Looking ahead to the challenges awaiting him, Nagle was full of optimism: “I am grateful for the trust placed in me by the Board and honoured to be appointed CEO at such an exciting time for Glencore. We will continue to deliver value to our shareholders, while operating safely and responsibly.”
Nagle will relocate from Australia to Switzerland to take up his new role.