/ 4 November 2009

Exxaro to exploit coal reserves in Waterberg

South African diversified miner Exxaro said on Wednesday it has 4,5-billion tonnes of coal reserves in the Waterberg region to the north of the country, where it planned further expansions.

”We estimate that we have 4,5-billion tonnes in the Waterberg,” Ernst Venter, Exxaro’s executive general manager, said in a presentation and tour of the group’s operations.

Exxaro also said 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 maker 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 Limpopo, which is known to have substantial coal reserves located in the Waterberg region.

Exxaro, the main coal supplier to Eskom, also said it would deliver the first consignment of coal to the power firm’s Medupi power station, which is currently under construction, by October 2010. — Reuters