Manungu Own and Operate

Manungu Own and Operate

At the crack of dawn, a team of ten were up and on their way to Manungu Colliery (-
later “Manungu”) for one of Mbuyelo’s systematic site visits. Manungu is one of the
company’s large reserves located in Delmas, Mpumalanga.

With a contractor, a mine has no control over the execution, but since Manungu Colliery started mining for itself, it has had complete control over the production outcome. Now the mine has its own employees and own equipment. Within two months of operating, the mine crushed their production record for the last 6years! “The mine is doing so well, that we had to ask the Manungu operational team to slow down, something that is unheard of,” commented Kervin Mthombeni, Mbuyelo Coal Chief Financial Officer. Manungu Colliery has acquired machinery in the form of 777 trucks; D11 dozers; D10 dozers and excavators. The equipment at Manungu is indeed of a high magnitude, because of the size of the mine. Manungu is an opencast operation, with an estimated 410million resources. The life of mine is measured at a hearty 30years.

Like every business, the corona virus pandemic put a strain on the operation, and it made it immensely challenging to switch to an “own and operate”, but with the team working so tirelessly on the project, they overcame the hurdle.

Manungu Colliery had been running on what is affectionately known as a “boot crushing and screening plant” in the mining industry. This was a five year contract with Fraser Alexander to build, operate and then transfer the crushing and screening plant. Manungu is happy to declare that it has concluded that contract, and effectively does its own crushing and screening.

What a year 2020 has been for Mbuyelo Coal.

Suppliers Meeting in Delmas

Suppliers Meeting in Delmas

A generous amount of the Delmas community met up with the appropriate Mbuyelo members to discuss ways of placing their businesses on the Mbuyelo Supplier’s database, mostly for the mining operations that Mbuyelo operates on the Delmas area. The mines in question are the Manungu and Rirhandzu Colliery.

The meeting was held in a cosy conference room at the Delmas Country Lodge. After a short welcome from Community Development Manager, Hunadi Sebaka, the Mbuyelo Procurement Team Representative, Shane Moetlo proceeded to brief the audience on the minimum that would be a prerequisite for potential suppliers at any of the Mbuyelo mines. Thereafter, the floor was opened up for questions. Concerns ranged from the straight-forward “How does one get their company on the Mbuyelo Supplier’s Database?” to the more complex issues of “How do SMME’s tackle competing with the larger and more developed companies?” The meeting was structured as a brainstorming session between the two parties, and it was based around how the community of Delmas could also gain value from the mine, while the mine itself makes its contribution to the economy of the country.

Attendees included suppliers offering laundry services, cleaning and food supply, diesel suppliers, yellow plant owners, engineering services, construction services, etc. “The company will without a doubt consider the Delmas community first when looking at the Suppliers Database…” highlighted Moetlo, visibly putting minds at ease. “Please make sure you have your basic requirements in place.

These will already give you a better standing and are relatively inexpensive even for an SMME to secure…” he added. Manungu Colliery’s life of mine is estimated at a healthy 30 years and is intended to be mined opencast. Rirhandzu on the other hand is in operation already and has a life estimated at a satisfactory 8years with 6 939 385 mineable resources in situ.

Manungu Colliery in a CSA with Eskom

Manungu Colliery in a CSA with Eskom

It has been years that Mbuyelo had been working towards an achievement of this magnitude. The signing of a Coal Supply Agreement (CSA) with a nationally recognised conglomerate is nothing short of impressive for the Company, and we pat the backs of all who worked directly and indirectly, to make that dream become a reality.

Mbuyelo has been in talks with Eskom negotiating a CSA between the two houses. It has not been an easy task either and as arduous it was, we believe all had been well worth the proverbial “blood, sweat and tears”. Eskom is one of the top 20 utilities in the world by generation capacity. It generates 95% of the electricity used in South Africa and 45% of the electricity of the whole African continent, and is is wholly owned by the South African Government.

The CSA comprises of two phases which in phase one, Mbuyelo is to supply Kendal Power Station with coal for 3years and the second (-the next 4 to 15 years) the company is to supply Kusile Power Station, with Eskom-quality coal. This would be coal coming from the Company’s Manungu Colliery, located in Delmas, Mpumalanga Province – South Africa. Manungu Colliery includes the farms Weilaagte 271IR and Welgevonden 272IR. “These news immediately evokes a feeling of sheer fulfilment as I see the Company reach such a remarkable milestone. It seems patriotism does indeed exist and not only within Mbuyelo but the nation at large. We strive to provide only our best as we remember not only the contribution we are to make to Eskom, but to South Africa as a whole…” reflected Mbuyelo Coal Chairman and Chief Executive Officer, Mr Rirhandzu Owner Siweya.

Manungu Colliery is an opencast production with an estimated resource of 410 million tonnes. The CSA puts many parts of the vehicle in motion as it involves and affects many individuals some of which are f the Delmas community who will benefit from having Manungu in their respective areas.

Mavhungwani continues to grow

Mavhungwani continues to grow

Mavungwani Colliery has a resource of about 38 000 000 million tonnes which covers an area of 22 000 hectares. The Mining Right over the Western part of the Colliery expires in May 2022 and is in the process of being extended.

The Mining Right over the East of the colliery expires in August 2044. Mavungwani Colliery (“Mavungwani”) has been working on a BOOT (a term in the mining industry referring to the building, operating and finally, transferring) on a wash-plant with a well-known Fraser Alexander, who have been providing customised solutions to the mining industry since 1912.

Currently Fraser Alexander own and operate the highest number of coal wash plants of any independent contracting company in South Africa. “Mavungwani is proud to announce that as of the 16th of December, the Processing plant which was previously constructed and operated by Fraser Alexander on a BOOT basis, will be transferred to Mavungwani Colliery” exclaimed Hentie Hoffman, Mbuyelo Coal Chief Operating Officer (COO). The capacity of the plant is 400 tons per hour, 250 000 tonnes per month. It is a single stage multi product plant which produces Eskom grade Coal, Export A and B grade Coal, and inland A and B grade Coal. This is absolutely great news for Mbuyelo Coal.

In other news at Mavhungwani, Mbuyelo Mining Contractors (“MMC”) has been brought in as a contractor to take over some of the pits in Mavhungwani. This is purely to de-risk the project from one contractor because of the magnitude of the mine. MMC now work in conjunction with a very well-known and trusted contractor, ALS Group, to allow for maximum production of the operation. Each contractor can now concentrate on their respective pits. “MMC was brought in to take over only certain pits which helps …” commented Hentie Hoffman, Mbuyelo Coal Chief Operating Officer (COO).

On the 1st of February 2020 Mavungwani Colliery contracted with Mbuyelo Mining Contractors (MMC) to conduct opencast truck and shovel operations at the Eastern part of the Colliery. MMC has experience of opencast mining going back since 2011. MMC is 100% owned by the Mbuyelo Group and has the capacity to mine 810 000 cubic metres per month. MMC employs 250 employees at Mavungwani Colliery. The equipment deployed by MMC consists of 27 X ADT’s, 3 X RDT’s, 7 X Excavators, 3 X production Dozers of which 2 are D9’s and 1 D10. There are 2 X D8 Dozers, 2 X Graders, a service truck, a Diesel Bowser, a Water Bowser and 2 X Front end Loaders.”

Mbuyelo acquires Ntshovelo and scores points!

Mbuyelo acquires Ntshovelo and scores points!

Mbuyelo Coal (Pty) Ltd (“Mbuyelo”) celebrates another victory by succeeding to acquire majority shareholding in Ntshovelo Mining Resources (Pty) Ltd (“Ntshovelo”).

Ntshovelo owns the mine Vlakvarkfontein, which is located in Delmas, Mpumalanga. Vlakvarkfontein is already operating and is left with three and a half years to its life of mine. Vlakvarkfontein has been supplying Eskom and plans to continue to do so as it renews its Coal Supply Agreement (“CSA”) with South Africa’s power utility.

When ASX-listed Continental Coal (Ltd) fell into business rescue, Mbuyelo exercised their pre-emptive rights. With the help of generous funding from Investec (Ltd), the Company was successful in their objective to have a comfortable handle of things as far as Ntshovelo was concerned.

Where does this put Mbuyelo?

“Mbuyelo now has majority ownership of all of its operating mines including Manungu, Welgemeend, and now Ntshovelo’s Vlakvarkfontein…” commented Mbuyelo Coal’s CFO, Kervin Mthombeni. This is of course good news to the company – to South Africa as a whole. When Mbuyelo Coal’s CEO, Mr Rirhandzu Owner Siweya started Mbuyelo, his dreams were to be one of the biggest and most successful black companies in the world. His belief in empowering himself and all the black people of South Africa has catapulted the company to what it is today.
Mbuyelo… ku tiyimisela, ku humelela!’

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