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Key facts

Location   85 km north of Richards Bay in KwaZulu-Natal Province
Acquired by Petmin   2005 – in pre-feasibility stage
Operated by   Tendele Coal Mining, a Petmin subsidiary
Commissioning   Commissioned opencast mine and first plant in June 2007
Reserves and resources   SAMREC-compliant open pit reserves of 24.54 million run-of-mine tonnes

SAMREC-compliant resources (inclusive of coal reserves but excluding Area 3) of 118.72 million mineable tonnes in-situ

Area 3 has 21.42 million mineable tonnes in-situ (coal seam only excluding partings)
Mineral rights   New Order Mining Rights valid to 2031 and 2034 for extension to existing mining areas

Mining right applications for remaining areas submitted in June 2013 and waiting

Department of Mineral Resources adjudication

Mining   Current operations cover approximately 10% of the 22,000 hectares on which Petmin has either existing rights or has submitted rights applications

Open-pit, truck and shovel mining method

Plant   First plant capacity of – 550,000 saleable tonnes of anthracite per annum

Second plant capacity of – 650,000 saleable tonnes of anthracite per annum

Third plant capacity of – 400,000 tonnes per annum of energy product
Products and markets   Petmin’s metallurgical anthracite competes with bituminous coals, chars and cokes as a carbon feedstock in the metallurgical industry Anthracite is exported via Richards Bay (49% of 2014/15 sales) to iron ore pelletising and sintering markets, mostly in Brazil

The balance of Somkhele production is sold to the South African ferro-alloy industry (51%)

Petmin’s low volatile, high-ash energy coal is exported to various markets around the world and is primarily used in the cement and low-volatile power station markets

People   More than 900 employees (including on-site contractors)

Approximately 80% from the local community