Klipspruit Life Extension Coal Project, Mpumalanga

Currently South 32 is the owner operator (90%) of the Klipspruit Mine. It lies within the Springs-Witbank Coalfield and produces a nominal 8 million ton per annum (Mtpa) Run of Mine (RoM) of both high and low quality coal. Authorisation for the Klipspruit Mine was received in 2003. Currently, the life of asset plan has a sharp decline in export tonnes as the operations at the Klipspruit Mine ramp down. To maintain the current export volume profile and fulfill the take-or-pay agreement at PCPP JV, South 32 intends to implement the Klipspruit Life Extension Coal Project. South 32 is the holder of three prospecting rights in close proximity to the existing Klipspruit operations, containing coal resources of approximately 500 million ton (Mt). The Klipspruit Life Extension Coal Project is positioned to leverage off the existing export infrastructure, and extend the LoM by 20 years or more. Estimated project value : 4.3 billion.