Transnet today (Thursday) concluded a 10-year take-or-pay coal transportation agreement with Ledjadja Coal as part of their commitment to expand the Waterberg coal line and unlock coal mining opportunities in Limpopo.
The new R10bn partnership will see Transnet haul 3.6 million tonnes per annum (mtpa) of export coal from the Boikarabelo Coal Mine in the Waterberg coalfield to the Richards Bay Terminal Grindrod (RBTG) in KwaZulu-Natal from June 2022.
Following the announcement in Midrand, Transnet chief customer officer, Mike Fanucchi, said the contract would help lower operational costs at the state-owned entity.
The oversight of the operation will be done in partnership with Ledjadja Coal, a fully empowered subsidiary of Australian energy giant, Resource Generation (ResGen), which has overseen the development of the Boikarabelo Coal Mine for more than a decade.
According to ResGen CEO, Leapeetswe Molotsane, the expansion of rail capacity on the Waterberg coal line will lead to the development of infrastructure, create job opportunities and boost the economy of the region.
“The signing of the deal is an important effort in opening up the Waterberg region, in line with South Africa’s strategic imperatives embedded in SIP (Strategic Infrastructure Projects) 1,” said Molotsane.
“Boikarabelo is a genuine public-private partnership with key South African stakeholders such as Transnet. Securing rail capacity with Transnet is a huge milestone for the company as it results in multiple economic benefits for Lephalale and surrounding areas.”
Additionally, Transnet confirmed that they had initiated phase 2 and 3 of the Waterberg Project following the construction of a 1.8km long passing loop at Matlabas. The expansion at Matlabas will enable 100-wagon trains to cross without disrupting the operation of other trains on the line.
Phase 2 will see the construction of a 2.8km loop at Thabazimbi, while phase 3 of the project will connect loops at Bleskop and Norite through a new 5km line. Once completed, there will be sufficient rail capacity for Ledjadja and other mines in the area to evacuate all their coal to various markets. – Bjorn Vorster
