exxaro coal
Feature image credit: Wikimedia

African Rainbow Minerals (ARM) Coal operations supply coal to Eskom and are considered essential to the maintenance of power generation in South Africa.

These operations continue to operate in terms of the lockdown regulations, and in terms of the guidelines issued by the Department of Mineral Resources and Energy to continue to supply Eskom.

Any export of coal will need to be approved by the Department of Mineral Resources and Energy and will be subject to the availability of rail capacity.

In compliance with the nationwide lockdown, all ARM mining operations including Khumani, Beeshoek, Black Rock, Modikwa, Two Rivers and Nkomati mines have been placed on temporary care and maintenance for the duration of the lockdown period.

All activities at Machadodorp Works have been suspended.

Cato Ridge Works has switched off its furnaces and converter.

The Sakura Ferroalloys operation located in Malaysia remains in full operation in accordance with local Malaysian regulations.

Necessary care and maintenance work will continue at all affected operations to ensure that integrity of assets is maintained and to ensure a safe and efficient ramp up after the lockdown.

Read more about coal

Additional safety, health and hygiene provisions are in place to protect the wellness of employees that continue to work during the lockdown.

In addition to the above, Two Rivers Mine received notice of force majeure from Impala Platinum Limited (Impala).

In terms of this notice, Impala indicated that for the duration of the lockdown period it will not be able to receive concentrate in terms of the agreement whereof Impala purchases concentrate as delivered by Two Rivers Mine.

Management does not anticipate this notice will have any additional negative impact over and above the impact of the temporary care and maintenance described above.

Read more about mining in Southern Africa

African Rainbow Minerals’ robust financial position gives it flexibility to responsibly navigate this period of uncertainty and ensure ARM’s long term sustainability.