Exxaro’s R20bn commitment

2019-01-10T13:50:39+00:00 January 9th, 2019|News|

Exxaro is planning to invest in South Africa in the long term.   

Even before President Cyril Ramaphosa’s drive to attract investments started building up steam, South African company Exxaro made a commitment, through various projects, to expand into their country of origin.

 Exxaro’s R20bn commitment
Image credit: Leon Louw

Johan Meyer, executive head projects and technology at Exxaro, tells African Mining that the company is investing more than R20-billlion in projects across South Africa.

“The company’s Belfast project in Mpumalanga is a greenfields site that makes up about R3.3-billion of the R20-billion worth of projects in my portfolio. Exxaro’s project capital is more or less split in half between developments at and around the Grootegeluk mine, close to Lephalale in Limpopo province and various project in Mpumalanga province,” says Meyer.

According to Meyer the company is working on a R4.8-billlion expansion project at Grootegeluk and a rapid load-out programme of R1.3-billion, which should both be completed in 2019. “Then there is the Thabametsi project at Grootegeluk. Thabametsi will provide coal to the new Independent Power Producer’s (IPPs) coal power station in Lephalale. All the designs for Thabametsi has been completed,” says Meyer.

In Mpumalanga, the company is busy constructing a new coal mine at Belfast, in addition to the Leeuwpan coal mine extension project, which is worth more than R600-million.

“Leeuwpan has started producing coal, ahead of schedule and below budget, so it is something we are very proud of,” says Meyer. Exxaro’s other activities in Mpumalanga include the Matla project, which is funded by Eskom and also the Mafube project, a partnership between Exxaro and Anglo American Coal, which will add an additional 15 years to the life of mine.

“We should not underestimate Exxaro’s impact on people’s lives. Exxaro is a proudly South African company that is reinvesting in South Africa. R20-billion is more than 1% of the USD100-billion that President Ramaphosa wants to attract investment to the country,” says Meyer.