Name of the Project
Menar coal and anthracite projects.

Location
Gauteng, KwaZulu-Natal and Mpumalanga, in South Africa.

Project Owner/s
Menar, through its subsidiaries Kangra, Canyon Coal and Zululand Anthracite Colliery.

Project Description
Menar, through its subsidiaries, will have the capability to produce 20-million tons of coal a year from 2025 onwards.

Several projects are proposed, including:

• the Bekezela project, near Springs, in Gauteng, at which Menar plans to produce about 600 000 t run-of-mine (RoM) a month. Menar is hopeful that Bekezela will be a megamine. The estimated life-of-mine (LoM) for Bekezela is about 22 years.
• the Thuso underground and opencast coal project, north-west of Bethal, in Mpumalanga, which has an estimated LoM of 11 years, based on RoM production of about 120 000 t a month.
• the Sukuma opencast project, in Vereeniging, Gauteng, with an LoM of about 30 years, based on RoM production of about 600 000 t a month.
• the Gila underground project, in Bethal, Mpumalanga, with an LoM of about 15 years, based on RoM production of about 150 000 t a month.
• the Umzila underground project, in Hendrina, Mpumalanga, with ann LoM of 20 years, based on RoM production of about 200 000 t a month.
• the Umgala underground project, which is located about 4 km south of Utrecht, KwaZulu Natal, has an RoM production of about 200 000 t a month, and an LoM of about ten years. 

Kangra’s Kusipongo resource has about 41.9-million tons of reserves and includes the development of the Balgarthan A adit, which started producing first RoM towards the end of 2023. In October 2023, one section at Balgarthan A adit exceeded its production target by a substantial margin, producing 76 000 t of RoM coal against a target of 42 000 t.

Coal reserves have been depleted at Phalanndwa Colliery’s main opencast operation and Phalanndwa Colliery Extension. The mine has started rehabilitation at Phalanndwa Colliery Extension.

Potential Job Creation
Menar projects are expected to create about 2 400 jobs, including 800 at the Bekezela project, 200 at Thuso, and 800 at the Sukuma opencast mine. Umgala will create about 600 jobs. 

The operating Khanye Colliery employs 400 people. 

Gugulethu currently has 162 employees. The mine will employ 430 employees once it reaches full production. 

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Menar plans to invest about R7-billion in coal projects from now until 2026, including R1.5-billion in Bekezela, R600-million in Gugulethu for Phase 1 (already spent), R1.5-billion in Sukuma, R700-million in Thuso, R1-billion in Umzila and Gila, about R800-million in Umgala and about R130-million in the Mngeni Shaft development (already spent).

Planned Start/End Date
Gugulethu started producing the first RoM on 26 January 2024.

Menar envisages to start with the development of the Bekezela and Thuso collieries during the first quarter of 2025.  

The Sukuma, Umzila, Gila and Umgala projects are expected to start production in 2026.

Mngeni Shaft achieved first coal in April 2024.

The start dates for the projects, however, are subject to regulatory approvals and coal market conditions.

Latest Developments
The Bekezela and Thuso projects are now fully licensed. 

Key Contracts, Suppliers and Consultants
ZAC:
Phillips, JA Engineering; Sandvik; Volvo; ZNZ Construction & Projects; Ntwanaza Logistics; Mhobozeli; Beautiful Landscaping; Zululand Bus Services; Zamokuhle MJ Catering & Other Services; Uzamile Trading; Increase Business Construction; Thuthukani Trading Co-Operative; Izithenjwa Corporative Enterprise; Emhlophe Investments & Trading; Khumbulani N Son; Ikusasa Lama Jola; Babazani Construction & Projects; Dibanto General Services; Tsakane Health & Safety; Conax Mining Solutions; Ngwenya Minerals & Processing; Komatsu and Langa iLanga. 

Kangra:
Komatsu-Joy Global; J.A. Engineering; Andani Mining Services; Coalseam Hydraulics; Sandvik; Conax Machine Solutions; Continental Conveyors; Fenner Conveyor Belting; Maxam Dantex; Kennametal; Cincinnati; Gilberts; Barloworld; Mumnkosi Project & Services; Zama Phangwa Construction; Macina Building & General Maintenance; Mgquzeni Mining; Donkerhoek Mining Projects (DMS); DDK Logistics; Tsakane Health & Safety and Ngwenya Minerals & Processing.

Canyon Coal:
Volvo; CAT; Bell; Komatsu; Mbalenhle Tours And Construction; Dube Solution; Grapeseed Trading 102; Golden Reno Trading and Project; Kungwini Mica; Mulwane Investments; Nduzane General Trade; Phoka Goje Transport and Services; W Masuku Transport and Projects; Summer Triangle Trading; Madlayedwa Transport; Mrholozi Group; Sesupha Solutions; Kgaditse Prestige Events; Ndimande Logistics and Transport Mancamane Trading Enterprise; SSW Signs & Reflective; Malele Hydraulics; Malefo Mining services; Nkosana Sizwe Trading Enterprise; 1st Episode Trading; Two Mosquitos; Road Science Technology; Armoured Enterprise; Amandla Mining Service; Starcrow 36; Buhlebuta Business Enterprises; Afikile Construction; NTT Toyota Delmas; Maphangela; Bakone Bakopane; PTM Trading; Khethowakho Trading & Projects; Inelco International; Xclusive energy; BMG Delmas; Morgan Gift; Enhle projects; MTN; Huawei; Minetec Smart Mining; CNNC Trading; AECI Mining; Akani Plant Hire; Skhomo Group; Blu Line Group; Techpioneers; Precon Survey Services; Ingwenya Mineral Processing; Mineral Processing Technologies; Ronewa Analytical Laboratory; Sheqman Solutions t/a SA Mineral Laboratories; GFK Consulting Engineers; Lelethu and Co; Zuva Mining; Bakamoso; Pentalin Processing; Safety and Training Solutions; CTC-Colliery Training College; Godrich Motors; M2 Environmental Connection; Openhouse Management Solutions; Tsakane Health & Safety; Life Care Response Emergency Medical Service and Khisani Projects.

Contact Details for Project Information
Menar, tel +27 11 783 7996 or email info@menar.com.