Status of Waterberg Coal development plan

1
Status of Waterberg Coal development plan
Presentation at the Lephalale LED Summit Lephalale

• Ernst Venter
• General Manager Kumba Coal
• May 2005

2
CONTENTS

• Contents
• Refresher
• Status of development plan
• Role of Lephalale development forum
• Conclusion

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COAL FIELDS OF SOUTHERN AFRICA
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CHARACTERISTICS OF WATERBERG COAL FIELD

• Dimensions
• Stretches 40kms from N to S and 88kms E to W
• Extends Westwards into Botswana
• Geological Characteristics
• Part of the Ecca group of coal deposits
• Volume 75,7 billion tons of in-situ inferred
  resources (Upper and Middle Ecca)
• 40 of the remaining coal reserves in RSA
• Stratographic thickness of 115 m consisting of 11
  coal bearing zones
• Mineable coal seams much thicker than Witbank
  Mpumalanga coal fields

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WATERBERG COAL FIELD

• Fault Bounded by
• Zoetfontein fault along the Northern side
• Eenzaamheid fault along the Southern boundary
• Daarby fault divides the coal field into open-pit
  mineable and underground mineable reserves

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GEOLOGICAL PROFILE
Upper Ecca Bright Coal with inter-bedded shale
Lower Ecca Dull Coal, Sand stone and
Carbonaceous shale
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KUMBAS CURRENT PROPERTIES
40- year pit layout
Inferred
Daarby Fault
Current Pit
Reserves in excess of 400 years
Measured
Indicated
Inferred
Eenzaamheid Fault
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CURRENT MINING ACTIVITIES
GROOTEGELUK COAL MINE

• Historic Milestones
• Coal discovered in March 1920
• Geological mapping from 41 to 52
• Iscor acquired mining rights in 57
• Intensive exploration started in 73
• Grootegeluk 1 Plant built in 80
• Matimba 1st unit commissioned 87
• Grootegeluk 2 Plant built in 92
• Grootegeluk 3 Plant built in 94
• Grootegeluk 4 Plant built in 96
• Grootegeluk 5 Plant built in 98

• Production (tons per annum)
• Semi-soft coking coal
• 1,850,000
• High-ash steam coal (ESKOM)
• 13,300,000
• Corex coal
• 490,000
• Medium Phos PCI
• 200,000
• Sized steam coal
• 400,000
• TOTAL
• 16,240,000

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GROOTEGELUK MATERIAL FLOW
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Current Operations in the Waterberg
Matimba Power Station
Grootegeluk Coal Mine
11
Kumbas Original Development plan for Waterberg
Phase 3 Green fields new coal mine for exports
nearby Lephalale. Products (coal tons pa) -
10 mt for exports Time-frame in 10-12 years
Other Downstream Opportunities Char
Market Coke Coal Liquefaction
Activated Carbon Coal-bed Methane
12
Status of development
1800MW expansion PFS completed April
2005 8mt/annum
13
Status of Development plan
4000MW greenfields 14mt/annum PFS commenced Time
frame 6-10years
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Kumbas Original Development plan for Waterberg
Other Downstream Opportunities Char
Market Coke Coal Liquefaction
Activated Carbon
Char FS completed May 2005 Market coke PFS
completed 2004 Coal Liquefaction Desk top study
completed, independent technical review in
progress GG6 plant In construction phase
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KUMBAS Development plan for WATERBERG
2005 Production 18,5mt !
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INFRASTRUCTURE CONSTRAINTS

• Water Various options exist to increase supply
• Groundwater utilization
• Rising of the dam wall of the Mokolo dam, planned
  for first phase
• Pump of water from the Krokodil river to Mokolo
  dam
• LogisticsRail capacity will be a constraint for
  the second and third phases. Two options are
• Extension of the Coallink railway line into the
  Waterberg
• A new railway line via Polokwane and Burgersfort
• Joint project team with Spoornet , technical
  alternatives allready identified and planned

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Grootegeluk
SPOORNET INFRASTRUCTURE
Thabazimbi
Northam
Rustenburg
Pyramid-South
Rustenburg
Pretoria
Greenview
Witbank
Sentrarand
Blackhill
To Germiston
Delmas
Ogies
Broodsnyersplaas
Welgedag
Saaiwater
Leeuwpan
S W A Z I L A N D
Hawerklip
Van der Bijl
Halfgewonnen
Trichardt
Bethal
Kelty/Leandra
Saldhanha
To Springs
Hamelfontein
Twistdraai
ERMELO
Overvaal
Panbult
Kemp
Volksrust
Piet Retief
Newcastle
Utrecht
Paul Pietersburg
Ngagane
Mahulumbe
Ballengeich
Dannhauser
Sikame
Hattinghspruit
Vryheid-East
Vryheid
Glencoe
Talana
Elandslaagte
Lenjanedrif
To Durban
COAL Line
General Freight AAAAA
GG Destinations
RBCT
Enqolothi
Nsese
RBCT
To Empangeni
(March 05)
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Grootegeluk Expansion
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Coal Line expansion projects impacting Waterberg
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Lephalale development forum
Lephahalale development forum established to
develop an integrated socio economic development
plan for this area. Essential that all
stakeholders are involved ie Local
government Provincial government Trade and
Investment Limpopo (TIL) Educational
authorities Local Business , role players
Environmental authorities Infra structure
development role players Financing
institutions Housing and healthcare associations
etc.
Together we will make it happen !!!
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KEY ROLE PLAYERS

• Limpopo Provincial government
• TIL
• DME
• NER (National Energy Regulator)
• ESKOM
• Spoornet
• DWAF
• Local Community (Lephalale)
• DTI / DPE
• Consortium partners
• IPP (Independent Power Producer)?
• Funding Partners / Investors

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CONCLUSION

• Definite progress
• Excellent support form local , provincial
  government and all stakeholders
• Kumba will keep on facilitating and actively
  support social investment and development
  activities

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CHALLENGES

• Competition
• To ensure that the Limpopo Province is the
  preferred site for new Power Generation capacity
  in RSA.