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MODERN MINING
July 2016
COAL
A
lthough Wescoal’s origins lie in
coal trading (it was incorporat-
ed in 1996 under the Chandler
name to purchase the coal trad-
ing business and other assets of
the Chandler family), today the major part of
its earnings (79 %) come from coal mining (al-
though the trading division accounts for 61 %
of revenue). It first entered the mining field in
2009 when it acquired Khanyisa near Kendal
with in-situ reserves of 4,5 Mt, in 2013 adding
a second mine, Intibane, in the same area, to
its operating portfolio.
While both Khanyisa and Intibane have
performed well for Wescoal, neither is a par-
ticularly big nor long-life operation and
Elandspruit is clearly the mine which will
underpin the group’s future. Says Sulaiman:
“Elandspruit has a reserve of plus 34 Mt and a
life of mine of approximately 15 years at a min-
ing rate of 2 Mt/a. This now ranks as Wescoal
Mining’s prime asset. Its effect on the group
was very evident in the second half of FY2016,
which saw the mining division putting in an
incredibly strong performance.”
Wescoal’s ROM production during FY2016
was 1,85 Mt from all three mines, with
Elandspruit contributing 1 214 kt, Intibane
Elandspruit
supercharges Wescoal
Wescoal CEOWaheed Sulaiman.
With its new Elandspruit opencast mine up and running and meeting its
production targets, junior JSE-listed coal miner and trader Wescoal has
recently reported the best results in its history with headline earnings
per share increasing by 76,1 % in the year to 31 March 2016.
Modern
Mining’s
Arthur Tassell recently visited Elandspruit – which is just
5 kmwest of Middelburg – and also spoke to Wescoal Holdings
CEOWaheed Sulaiman, who explained that the group’s vision
– in respect of its mining division – was to become an 8 Mt/a
ROM coal producer.
Dutch Botes (left) CEO
of Wescoal Mining, with
Wescoal’s Processing
Manager, Jaap Kruger.