Name of the Project 
Menar coal projects.

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

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

Project Description
Menar, through its subsidiaries, will have the capability to produce almost 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 is scheduled to produce 600 000 t run-of-mine (RoM) a month. This megamine is expected to be Menar’s flagship opencast operation. At the scheduled production volume, the estimated life-of-mine (LoM) for Bekezela is roughly 22 years. 
• the Thuso underground coal project, north-west of Bethal, in Mpumalanga, which has a scheduled LoM of ten years, based on an average RoM production of 110 000 t a month.
• the Sukuma opencast project, in Vereeniging, Gauteng, with an LoM of 30 years, based on a RoM production of 600 000 t a month.
• the Gila underground project, in Bethal, Mpumalanga, with a scheduled LoM of 15 years, based on a RoM production of 150 000 t a month.
• the Umzila underground project, in Hendrina, Mpumalanga, with an LoM of 20 years, based on a scheduled RoM production of 200 000 t a month.
• the Umgala underground project, located about 4 km south of Utrecht, KwaZulu Natal, is planned to produce an average of 200 000 t a month, which translates into a scheduled LoM of ten years. 

Kangra’s Kusipongo reserve consists of 41.9-million tons of RoM, which is being mined from the Udumo and Uthingo (formerly Balgarthen) shafts. The strategic design of the Uthingo shaft ensures Kangra's ability to maintain production levels and profitability, even in challenging market conditions. Moreover, this shaft will later facilitate access to the adjacent T4 project, further expanding the LoM of the mining operations at Kangra.

Coal reserves have been depleted at Phalanndwa Colliery’s main opencast operation and Phalanndwa Extension. Rehabilitation is currently under way at Phalanndwa Extension. 

Potential Job Creation
The Menar projects are expected to create about 2 400 direct job opportunities, which consists of about 800 at the Bekezela project, 200 at Thuso, and 800 at the Sukuma opencast mine. Umgala will create a further 600 jobs. 

Khanye Colliery, an operational opencast mine in Gauteng, employs 700 people, including contractors. 

Gugulethu Colliery currently has 690 employees inclusive of contractors. 

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Menar plans to invest about R8.65-billion in coal projects from 2026 to 2028, including R2.3-billion at Bekezela, R250-million at Gugulethu for Phase 2 (R600-million already spent in Phase 1), R2-billion at Sukuma, R1-billion at Thuso, R1.1-billion each at Umzila and Gila, and about R900-million at Umgala. 

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

Subject to market conditions, Menar envisages to start with the development of the Bekezela and Thuso collieries during the latter part of 2026. Both projects are fully licensed and the surface rights have been secured. 

The Sukuma, Umzila, Gila and Umgala projects are expected to start production in 2028. 

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

Latest Developments
Coal producer Kangra has successfully commissioned a new continuous miner section at its Udumo shaft, equipped with three shuttle cars.

Production started early last month, two weeks ahead of schedule, demonstrating the mine’s operational efficiency, Kangra GM Paul Redelinghuys has said.

The expansion forms part of Kangra’s broader strategy to grow underground operations at the shaft from three to five sections in the coming years, reinforcing the company’s commitment to meeting increasing coal demand while maintaining high safety and productivity standards.

According to Redelinghuys, the expansions are expected to enhance resource extraction, improve operational efficiency and support continued economic contributions to the region.

“The expansion forms part of Kangra’s broader strategy to unlock the full potential of the Kusipongo coal reserve,” Redelinghuys has explained, noting that the reserve – estimated to hold about 41.9-million tonnes – could extend the mine’s life by more than 20 years.

With the recently introduced section, monthly RoM production is projected to increase from 110 000 t to about 140 000 t.

The expansion has also created an additional 38 direct jobs in engineering and mining, with further employment expected indirectly through supporting services such as coal hauling.

Key Contracts, Suppliers and Consultants
Kangra:
Komatsu-Joy Global; J.A. Engineering; Andani Mining Services; Coalseam Hydraulics; Sandvik; DurimGH; Strata Worldwide; Sperosens; Prisma Training Solutions;  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.