In the stope
hoping that we might even produce coal
earlier than the first quarter of 2020.
So, nothing on the mining side
has been completed yet?
No. Remember, on this project,
mining is not the critical path. The
critical path is to build the plant. We
follow an outsourced mining model.
Everything mining related is currently
being handled by the operational
readiness team and they will appoint
the contractor soon. The operational
www.miningmirror.co.za
team is preparing for the box cut and
to start producing first coal. The mining
operator still needs to be appointed.
Most of Exxaro’s operating mines
in Mpumalanga uses the outsourced
mining model and it has worked well.
Making use of a contractor means we do
not have the fixed costs of acquiring new
equipment. Contractors are a lot more
flexible in that regard and can move
their equipment.
In the long term, we can probably
re-look this model, especially when
phase two of Belfast comes into play.
Who knows, maybe there comes a time
when we bulk up capacity and say that
we should operate a mine ourselves.
However, for opening Belfast, the
decision was clear that we outsource
the mining activities; it gives us a
competitive advantage. While the run of
mine will be produced by an outsourced
partner, we will at the same time make
sure this partner is connected to our
systems, so that we can run each piece of
equipment productively.
FEBRUARY 2019 MINING MIRROR [35]