Canyon Coal

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Phalanndwa Extension Project

16 July 2019, Johannesburg

PRESS RELEASE

Canyon Coal starts Phalanndwa extension project

The extension project will increase the current life of mine (LoM) at Canyon Coal’s Phalanndwa Colliery by a further eight years.

Coal exploration and mining company Canyon Coal, a subsidiary of investment company Menar, has commenced mining operations at its Phalanndwa Colliery Extension Project, which is anticipated to extend the LoM to 2027.

Phalanndwa is located 20 km outside of Delmas, Mpumalanga and the extension project is crucial to extending the LoM of the colliery which was established in 2010 and began operating in 2013. Phalanndwa currently employs 310 people including contractors, which will be increased to around 340, once the extension reaches its peak production.

The project comprises one pit consisting of three coal seams namely: Two upper seam, which is approximately 0.7 m thick; two main seam, which is about 3.5 m to 4 m thick; and the two lower seam, which ranges from 1.5 m to 5.2 m in thickness.

Phalanndwa General Manager Alan Mabbett, is responsible for overseeing the development of the extension project that is being carried out by Canyon Group’s mining services company Canyon Mining Services (CMS).

“The mining development team has done very well. We are currently undertaking drilling with the first coal blast scheduled to place tomorrow (17 July 2019). Steady state production is expected to occur within the next three months. Once in steady state production the project will produce on average between 110 000 tonne and 125 000 tonne a month,” states Mabbett.

He notes that mining contractor Bamboo Rock is currently constructing the colliery’s pollution control dam. Additional project infrastructure that will be established on site over the next three months include: the construction of drainage systems, berms and other associated site infrastructure along with the construction of an access road to the mine.

“We are ahead of schedule on the project as first coal was initially anticipated for the end of July. CMS has already pulled back two weeks on the schedule and things are running smoothly which we hope will continue throughout the course of the extension project,” Mabbett concludes.

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For more information contact pr@menar.com