The first half of 2022 has been challenging, both locally and on a global level. In April, several days of torrential rain across KwaZulu-Natal resulted in deadly floods. Over 400 people died across the province and with many still unaccounted for and a multitude of homes damaged or completely destroyed by the floods. Critical infrastructure such as roads, railway lines, communication and electrical systems were also badly damaged by the flooding. It is estimated that this event caused more than R17 billion in infrastructure damage. 

The ongoing conflict in Eastern Europe had a devasting impact on civilian communities and the global economic ripple effects are being felt far and wide, including record high petrol and diesel prices. All of which are directly impacting the cost of living worldwide.

European countries are now seeking reliable and affordable alternatives to Russian coal and gas as a result of sanctions. This has resulted in a noticeable increase in demand for South African coal. The search for reliable energy sources, such as coal could provide long-term opportunities for the South African coal mining sector if local logistical and regulatory challenges can be overcome.

South Africa has a world-class infrastructure. However, Transnet Freight Rail is experiencing severe challenges in consistently transporting coal to, amongst others, Richards Bay Coal Terminal (RBCT) in KwaZulu-Natal. We remain positive, nonetheless. Proposals by government to allow third-party, private partners to operate sections of the rail network may be a first step in the right direction. Access for third parties to the railway network is precisely what industry partners have been seeking for years.

We are experiencing delays with the awarding of the water-use license (WUL) for Bekezela Colliery which will see us invest around R1.5-billion to develop the project and create more than 320 direct and many more indirect employment opportunities. This investment and jobs are desperately needed to reinvigorate the South African economy. Once the WUL has been awarded the mine will be developed and brought into production rapidly.

Improving operational efficiencies is key to the successes we have achieved over the years as Canyon Coal. As you will read in this edition of The Maroon Post, we are currently upgrading the wash plant at Khanye Colliery as part of our efforts to maintain our target production of 2.4 million tons a year. One of the upgrades is to the filter press which is currently discharging on a single conveyor belt. With the alterations, each filter press will discharge onto its own dedicated conveyor belt, allowing for independent operations and improved efficiency.

Meanwhile, at Phalanndwa Extension we achieved a new monthly mining record by mining 146 050 tons of run of mine in May 2022. It is heartening to see our mining teams achieving these production figures while maintaining impeccable health and safety statistics. The goals of achieving optimal production and the goal of zero harm are equally important to us.