With a number of projects set to come on stream in the near future, coal-mining giant Anglo Coal South Africa expects its annual output to increase substantially from the 60-million-odd tons it produced and sold last year.
The company’s new Mafube coal mine has already been commissioned, while the Mac West and Zondagsfontein mines will be commissioned by the end of this year.
Between them, the two collieries will add an estimated 11,7-million tons a year to Anglnylon ball mill containerso Coal South Africa’s production figures.
Anglo Coal says it does not rule out extending its expansion programme, with a number of projects to be commissioned between 2010 and 2setting up a quarry plant015.
CEO Ben Magara says that, of last year’s production, 36,1-million tons was sold to Eskom, 16,3-million tons was exported and the remaining 7,5-million tons was sold into thephosphate mines price inland industrial sector.
„Sales to Eskom and the inland industrial sector increased when compared with 2007 figures, while export volumes fell by 1,4-million tons, or 8,1%.”
State-owned power utility Eskom has embarked on a capacity build programme, which will see a number of new power stations being built in South Africa.
This presents coal-mining companies with a situation whereby the domestic demand for coal could exceed the export demand for the energy mineral.
Magara says that this situation “does put coal-mining companies in a favourable position”.
“In January 2008, Anglo Coal South Africa increased coal deliveries to Eskom in response to its urgent appeal in the light of the electricity supply crisis at that time.
Part of our response entailed the diversion of coal production to Eskom from the Kleinkopje and Landau collieries, which would otherwise have been beneficiated for export. In total, coal sales to Eskom of 36,1-million tons in 2008 represented an increase of two-million tons on the previous year’s figures.”