Anglo American opens $517m colliery in S. Africa

UK-headquartered Anglo American (LON:AAL) cut the ribbon today on a new coal mine in South Africa.

The fifth-largest mining company in the world by market capitalization has spent half-a-billion dollars since 2008 constructing the Zibulo Colliery in Mpumalanga, South Africa. The project is the first to be completed under Anglo’s black empowerment company Anglo American Inyosi Coal Pty Ltd. Coal will be produced for both local and domestic markets.

Anglo says the operation will deliver 8 Mtpa of thermal coal over a minelife of 20 years, with 7 Mtpa from its underground mine and the remaining 1 Mtpa from its opencast pit. Saleable production will be approximately 6 Mtpa, split evenly between domestic and export product.

The Zibulo mine, formerly known as the Zondagsfontein project, has been operational since 2009, producing about 6.2 Mtpa. The mine is expected to ramp up to 8Mtpa by the third quarter, Norman Mbazima, CEO of Anglo American Inyosi Coal Pty Ltd., told media Thursday.

Zibulo is also part of a 16 Mtpa run of mine joint venture washing plant, known as the Phola Coal Processing Plant, a 50:50 joint venture between Anglo American Inyosi Coal (Pty) Ltd and BHP Billiton Energy Coal South Africa Limited (BECSA). The plant, which is already operational, will be fed equally from Zibulo and BECSA’s Klipspruit Colliery, Anglo said.

Read the full news release



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