Zibulo Colliery

Anglo American launched USD 517 Zibulo Colliery in South Africa

04/12/2012 | Editor: Marcel Dröttboom

Anglo American has launched Zibulo Colliery in Mpumalanga, South Africa (The Photograph show a coal conveyor at Dawson mine, Australia). (Picture: Anglo American / VisMedia)
Anglo American has launched Zibulo Colliery in Mpumalanga, South Africa (The Photograph show a coal conveyor at Dawson mine, Australia). (Picture: Anglo American / VisMedia)

Anglo American has launched Zibulo Colliery in Mpumalanga, South Africa, the first major project to be completed under its flagship empowerment company, Anglo American Inyosi Coal. Zibulo will supply both domestic and export coal. The construction of the mine began in 2008, represents a total capital investment of USD 517 million.

London, United Kingdom – When it is fully commissioned, Zibulo will comprise a a multi-product operation delivering 8 million tonnes per year over a life of 20 years, with 7 million tonnes per year from its underground mine and the remaining 1 million tonnes per year from its opencast pit. Saleable production will be approximately 6 million tonnes per year, constituting both thermal export product and domestic product of 3 million tonnes per year each.

Zibulo is also part of a 16 million tonnes per year run of mine joint venture washing plant, known as the Phola Coal Processing Plant, a 50:50 joint venture between Anglo American Inyosi Coal and BHP Billiton Energy Coal South Africa (BECSA). The plant (which is already operational) will be fed equally from Zibulo and BECSA’s Klipspruit Colliery.

Anglo American Inyosi Coal has two operational mines, Kriel and Zibulo and future projects incuding New Largo, Elders and Heidelberg will form part of this company. While Kriel was transferred as part of the deal in 2008, Zibulo was a greenfield project.

Speaking at the opening ceremony in Ogies, Minister of Mineral Resources, Susan Shabangu congratulated Anglo American Inyosi Coal for the achievement. She said government was pleased to see empowerment deals that had significant participation by women and immediate communities that reside around mining areas. “I would like to congratulate both Anglo American and Inyosi for the successful commissioning of Zibulo Colliery. A fully operational mine signifies progress and growth of Anglo American Inyosi Coal,” Minister Shabangu said. She said government recognises mining companies such Anglo American as key partners in uplifting communities. “We are all aware of the inequalities that exist in our society today. Government alone cannot meet all these challenges that face our people today,” Minister Shabangu said.

Norman Mbazima, Chief Executive of Anglo American’s Thermal Coal business and chairman of Anglo American Inyosi Coal (Pty) Ltd Board said the partnership between Anglo American and Inyosi has delivered on its first project with excellent results.“Today marks an important milestone in the history of Anglo American Inyosi Coal. That we have been able to build and commission the first mine so soon after the company’s launch is testament to both parties’ commitment,” Mbazima said. He said the mine was built at the height of the global financial crisis which presented the company with a number of cost management challenges. “Despite this, we managed to have the first export coal from the Zibulo opencast section onto the train to the Richards Bay Coal Terminal on 30 October 2009,” Mbazima concluded.

Chairperson of Inyosi, Yoli Balfour, said the opening of Zibulo Colliery marked an important step in the journey to empower historically disadvantaged South Africans (HDSAs) through wealth creation from the country’s mineral resources. “Today is an important day for empowerment in South Africa and in particular women and communities that reside in and around our operations,” Balfour said. She said that the Inyosi consortium comprised of 86 per cent HDSAs and more than 50 per cent women participants. Communities around Anglo American Inyosi Coal operations will benefit from community projects funded separately by a trust. This means that communities also hold a stake in Anglo American Inyosi Coal through the trust.

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