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Exxaro plans coal expansion

Eskom’s Medupi
power station
Lephalale, South Africa — MININGREVIEW.COM — 04 November 2009 – South African diversified miner Exxaro Resources Limited has revealed that it has 4.5 billion tonnes of coal reserves in the Waterberg region to the north of the country, where it plans further expansion.

“We estimate that we have 4.5 billion tonnes in the Waterberg,” Exxaro executive general manager Ernst Venter said during a presentation and tour of the group’s operations.

Exxaro has also said that it would produce 25 million tonnes of coal per year by between 2015 and 2018 from a joint venture mine with Sasol “’ the world’s top producer of motor fuel from coal “’ to supply Sasol’s proposed 80 000 barrels-per-day coal-to-liquids project.

Sasol plans to build the new project, named Mafutha, in the Limpopo province, which is known to have substantial coal reserves located in the Waterberg region.

Exxaro “’ which is the main coal supplier to South Africa’s power utility Eskom “’ added that it would deliver the first consignment of coal to Eskom’s Medupi power station, which is currently under construction, by October 2010.