Sasol unit on track with R5.5bn mine

Shondoni Mine, in Secunda, Mpumalanga, to open soon

SASOL Mining, a division of Sasol, the JSE-listed petrochemicals, expects to complete the second phase in the construction of its R5.5 billion Shondoni Mine, in Secunda, Mpumalanga by September.

Lucky Kgatle, the senior vice-president for Sasol Mining, told journalists during a vist to the mine that the mine’s decline shaft would be completed this year.

“The construction of the underground infrastructure is 94 percent complete and is scheduled to be complete in September,” said Kgatle.

Sasol has spent R5.5bn converting the C brown fields project into Shondoni, which means place of wealth in Venda.

Shondoni employs 1 800 people mostly from the local community and was constructed in February 2012 .

It reported its first output last August and produces 100 tons a day with a ramp up target of 9.4 million tons a year.

Shondoni is part of Sasol’s R15bn mine replacement project, which was implemented in 2009 as Tweedraai, Brandspruit, Middelbult and Syferfontein reserves neared the end of their life of mine and had to be replaced.

The company had also spent R5.6bn with the Impumelelo Mine replacement, R3.4bn in Thubelisha and R1.4bn at Tweedraai.

The R15bn project aims to ensure the security of coal supply for Sasol’s petrochemicals operations from the Secunda complex until 2050.

Sasol Mining, whose coal complex comprises six mines that supply feedstock for the Secunda Synfuels and Sasolburg operation, produces 41 million tons of coal a year of which 3.5 million tons are exported to countries in Asia and Europe. The coal is used as gasification feedstock, and some is used to generate electricity.

The project was a vote of confidence for South African mining industry, Kgatle said yesterday. He said the investment demonstrated Sasol’s commitment to South Africa.

“I do not know of any other mining company that invested R15bn in the mining industry. We are committed to South Africa. We are looking at the long term,” Kgatle said.

“We are committed to South Africa. We are looking at the long term.”