The plan will see Anglo Coal establish a new opencast operation on the northern portion of the Kriel South coalfield. Sasol has been granted access to the southern portion of the coalfield, through the expansion of its existing underground operations.
Together the companies will invest US$136 million into the project with Anglo Coal taking the lion share at US$96 million. Production at the mines will commence in July 2005.
AFX Asia reported Anglo would produce 5 million tons per annum from its new open cut for Sasol’s consumption. Sasol plans to produce a similar tonnage from it increased capacity Syferfontein mine. Overall the two mines will produce about 200 million tonnes of thermal coal to Sasol over twenty years.
The agreement has resulted from a study by the two companies into the viability of the Kriel South coal reserves.
