Salungano Resources’ strategy to diversify its income streams has positioned the group to meet Eskom’s increased demand and optimise supply to other domestic and export customers.
Salungano Resources - represents the Mining division within Salungano Group. Today, the Mining division is the more significant part of the company, accounting for 82% of revenues and 99% of earnings as at 31 March 2021.
- 4 operating mines
- 4 processing plants
- > 10 years to the life of mine
- Reserves: 63Mt (FY20: 69Mt)
- 1 257 contractors
- 255 employees
* Delivered first coal from Moabsvelden Mine
* Project extension at Vanggatfontein to enable greater extraction.
Statistics across all mines
Lost Time Injuries
Total Recordable Injury Frequency Rate
Mining commenced in July 2015, and total planned production was achieved in October 2015. The mine currently produces more than 210 000 tonnes from the opencast area.
The Department of Water and Sanitation (DWS) awarded a WUL to Elandspruit in May 2015. This has made it possible to develop the mine under all the necessary compliance requirements.
Khanyisa Complex Colliery
The Khanyisa Complex comprises the previous Khanyisa mining area, the Catwalk and the Tri-Angle. After the consolidation process of the Khanyisa Mining Complex was completed, a Water Use Licence (WUL) for the total integrated area was awarded on 13 May 2016, and an amended mining right was granted in May 2017.
Initiatives are being pursued to Extend the Life Of Mine at Khanyisa Complex beyond 2021.
The Vanggatfontein Colliery (VGF) is an opencast coal mining operation, 100% owned by Wescoal. The Colliery mines the No. 5, No. 4 and No. 2 seams at an average of 340 000tpm runs of mine (“ROM”).
The total area of land disturbed is 356 hectares, and the mine is not within or adjacent to protected areas or areas of high biodiversity. Regular and consistent checks are done on the site, for the management of biodiversity, waste management and regular check ground and surface water quality.
Moabsvelden is the Mining division’s key greenfield development that will supply Kusile power station for a period of around 10 years and ultimately with approximately 3 million tonnes of coal per annum. The project is contiguous to the Vanggatfontein Colliery with an estimated declared reserve of 29.01 million tonnes. Trollope Mining Services Proprietary Limited has been appointed as the Moabsvelden box cut contract miner
Arnot Mine was acquired from Exxaro Coal Mpumalanga Proprietary Limited by Wescoal Mining Proprietary Limited in agreement with Innovators Resources Proprietary Limited in 2019.
Arnot Mine opencast and underground sections are set to contribute 190 million tonnes of coal reserves to the group (on a 100% basis). The mine is adjacent to Eskom Arnot power station which is at a cost-competitive advantage. The competent person’s report confirmed reserves of 13 million tonnes in the initial mining sections and a total reserve of 190 million tonnes – one of the largest coal reserves in Africa and the world
Salungano Trading is a leading coal distributor in South Africa.