Inyanda coal washing plant in new hands

South African coal beneficiation and future supply of beneficiated coal for energy generation received a significant boost with the acquisition and development of a coal beneficiation hub in the eMalahleni.

Ellington Nxumalo (Chief Executive Officer of Lurco Group) and Quintin van der Burgh (Burgh Group Holdings) signs the agreement.

Lurco Group together with Burgh Group Holdings bought the Inyanda Colliery with its mining rights, assets and a private rail siding from Exxaro Coal with the distinct purpose of enabling coal beneficiation for Eskom energy generation and international export.

The acquisition marks a significant step for energy coal beneficiation and Lurco foresees the beneficiation of more than 25 million tonnes of coal for the local and international export market over the next five years from the Inyanda Beneficiation Complex. The beneficiation hub is ideally located in the heartland of the Highveld coal fields and will add significantly to the country’s coal beneficiation infrastructure.

The acquisition will sustain employment following the recent depletion of the reserves at Inyanda Colliery, boosting mining transformation and supporting national beneficiation as described in South Africa’s Mining Charter.

“This acquisition enables us to meet significant demand for quality coal, both locally and abroad. We will source, beneficiate and move coal from our own reserves, that of the Burgh Group as well as other reserves in the eMalahleni coal fields,” said Mr Ellington Nxumalo, Chief Executive Officer of Lurco.

(From the left): Aubrey Chauke (Lurco Group), Ellington Nxumalo (Lurco Group), Neo Kgatuke (Exxaro Coal), Quinton van der Burgh (Burgh Group Holdings) and Ross Robertson (Burgh Group Holdings).

“Our coal beneficiation hub supports and strengthens our integrated coal business offering across the entire coal value chain from sourcing, beneficiation, logistics to supply for export and domestic use,” said Nxumalo.
“The beneficiation plant is centrally located in the eMalahleni district and has the benefit of the Blackhill private rail siding. Having the private rail siding brings additional logistics value and opportunity for Lurco, especially with the adoption of the road to rail integration plan as announced by Transnet Freight Rail,” Nxumalo explained.

“The private and fully compliant siding provides excellent access to freight for our export of coal.”
“We are very pleased about this transaction,” said Mr Sipho Nkosi, Exxaro Chief Executive Officer. “Lurco and their leadership team understand the entire coal value chain and are well positioned to continue to operate successfully in this region. Inyanda was one of Exxaro’s flagship mines and now after depletion of the Kalbasfontein and Pegasus South coal reserves, the well-maintained infrastructure will continue to generate value in the hands of Lurco and Burgh, and be put to good use for beneficiation. The deal is commercially sound based on solid business merits,” said Nkosi.

Nxumalo explains that the Lurco and Burgh joint venture is built on a strong shared business vision.

“Lurco Group and Burgh Group Holdings are the ideal partners for this venture. We share an energetic and entrepreneurial business approach. Both companies understand the coal mining business well and we see a very exciting and prosperous future for this joint endeavour,” added Mr Quinton van der Burgh, Chief Executive Officer of Burgh Group Holdings.

On November 17 the last coal was taken out at Iyanda Mine. It is expected that the last coal will be washed and transported to Blackhill Siding in mid-December. The mine will then continue with rehabilitation activities and apply for closure. A care and maintenance team will be appointed for the rehabilitation and closure process.