Exxaro Resources Anticipates Higher Level of Thermal Coal Exports than Predicted
Exxaro Resources, the South Africa-based mining company, is expecting to see an increase in its thermal coal exports.
The prediction was made by Finance Director Wim de Klerk In a Coal Commodity review issued by the company in advance of the publication of its interim financial results due on August 21, which will give a full round up of the company’s first half-year performance.
It states that the total expected full year export volumes are estimated to be higher than the previously guided 4.5 million tonnes (Mt), although he did not specify a figure at this time.
Production volumes for the first half of 2014 are expected to be marginally lower than the second half of 2013 due to lower off-take from Matimba resulting in Grootegeluk cutting back production due to full stockpiles, production interruptions at Matla, lower production at Inyanda and cessation of production at the New Cydesdale Colliery.
Overall production volumes are expected to be marginally higher than the first half of 2013 mainly due to increase at Matla, Gootegeluk and Leeuwpan.
Sales to South Africa’s utility Eskom are expected to be lower than the second half of 2013 due to few units running at Matimba and production difficulties at Matla. However, Eskom sales volumes are expected to remain stable in comparison to first half of 2013.
The report also revealed that state logistics company Transnet Freight Rail’s rate for January to May had been 60.6 million mt/year despite being hit by power outages and the annual 10-week long rail maintenance stoppage.
Exxaro Mining said the demand in the internal coal markets was generally holding up well amidst the global drive for energy efficiency and energy mix changes required by various countries.
Both global thermal and metallurgical markets, are however, over supplied and some of the supply side factors are structural.
This, it said, may even prolong the current imbalance between supply and demand and pricing is forecasted to be generally flat for the rest of the year.
Exxaro is one of the largest South Africa-based diversified resources groups, with interests in the coal, titanium dioxide, ferrous and energy markets and current business interests in South Africa, Botswana, Republic of the Congo, Inner Mongolia and Australia.
The company is the second-largest coal producer in South Africa and is listed on the JSE Limited, where it is a constituent of both the Top 40 and Socially Responsible Investment (SRI) indices.
AngloGold Ashanti establishes BG Umoja JV in Tanzania
AngloGold Ashanti, in line with it s strategy to ensure a sustainable contribution to the economies of host countries, has established the BG Umoja joint venture (JV), in Tanzania.
Awarded a $186m two-year mining contract for the Nyankanga and Geita Hill underground mining projects, the 80/20 joint venture is a partnership between Africa Underground Mining Services (AUMS) Tanzania, a subsidiary of Australia’s Perenti Group, and local drilling services and mining- supply company, Geofields Tanzania Limited.
The partnership is modelled on a similar underground mining joint venture at the Company’s Obuasi Redevelopment Project in Ghana between AUMS Ghana and Accra-based, wholly Ghanaian-owned Rocksure and will help build local specialised mining capacity.
“We’re working with our experienced mining contractors to assist in establishing local joint ventures for long-term transfer of sustainable skills, and to continue building on our sustainable local procurement programmes,” commented Sicelo Ntuli, AngloGold Ashanti’s Chief Operating Officer: Africa.
“AngloGold Ashanti is building sustainable local procurement programmes that will allow it to stimulate economic and social development at all of its operations, evidenced by the significant contribution Geita has made to the fiscus and people of Tanzania.”
AngloGold Ashanti’s annual expenditure with indigenous Tanzanian suppliers has almost tripled to $162mn since 2016. The company’s local team in Tanzania has set itself an ambitious target of 60% to 70% of all expenditures with indigenous Tanzanian companies, by 2025.
Scope 3 Emissions
In addition, AngloGold Ashanti’s Geita Gold Mine has awarded a two-year fuel transportation contract, worth approximately $10.8m a year, to two local contractors - one of which is originally from Geita. This is in line with the mine’s commitment to contribute to the economies of host communities. The Geita-based company was part of Geita Mine’s supply chain capacity building initiative for host community suppliers, a partnership between the Mine and the National Economic Empowerment Council.
To influence Scope 3 emissions, trucks are to be compliant with EURO IV emissions standards, tankers are to be made of an aluminium alloy material to reduce weight and the age of the fleet will be maintained at less than six years.
Diversity & Inclusion
The contractors already employ women fuel tanker drivers, fulfilling the Mine’s requirements for diversity and inclusion. The two contractors both own workshop facilities in Geita town and participate in social initiatives aimed at uplifting the lives of host community residents.
AngloGold Ashanti has been operating at Geita Gold Mine for more than 20 years, with the project initially a single pit mine, evolving now to a predominantly underground operation, employing 5,700 employees and contractors.
Earlier this year, the Government of Tanzania recognized AngloGold Ashanti’s contribution to the economy of the country, awarding it for its outstanding performance in a number of areas, including environmental and safety performance, corporate social investment, the best taxpayer in the mining sector, the runners up in local business content and overall best performer in the mining sector in Tanzania in 2019/2020.
Geita Gold Mine
Geita, one of AngloGold Ashanti’s flagship mines, is located in north-western Tanzania in the Lake Victoria goldfields of Mwanza region, about 120km from Mwanza and 4km west of the town of Geita. It has been in operation as a large-scale mine since 2000.