In the stope
Leeuwpan has
already started
producing coal, ahead
of schedule and
below budget, so it is
something we are very
proud of.
Technology enables us to monitor each
piece of equipment, whether it is producing
or whether it is a dozer or a front-end-
loader. Exxaro will equip the outsource
partner in such a way that we can monitor
and empower them to work according to
what they agreed in the contract.
Does this speak to the digitally
connected twin system?
We have to connect in a way that will
make it possible for us to monitor the
contractors and make sure they are
advancing according to the schedule that
we have agreed to.
The mining schedule is already digitally
available, so we have to make sure that
the contractor is on board. The mining
schedule will be digitally connected with
the contractor’s devices; they will mine
and, from a central point of view, we
will see whether they are keeping to the
mining schedule.
The digital twin life of mine plan is
already available; we now have to connect
the realities of the site to match that,
which will happen in real time. The
digital twin can only work once you get
the information flow, which is two years
after commissioning.
Although we cannot control
commodity prices, the digital twin,
however, monitors what we can control; in
other words, volume and cost per tonne.
The processing plant will also be equipped
with devices to monitor throughput and
cost per tonne. Then we will also monitor
the final product being transported to
the harbour on a pit-to-port principle.
We are interfacing with Transnet Freight
Rail (TFR) to monitor all the trains
transferring product to the harbour. This
will enable us to know exactly where the
trains are and the turnaround times. It is
key that we monitor the entire value chain
from run of mine to port, as this is when
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the cash flow is generated. The trains need
to run optimally towards the harbour,
without unnecessary stoppages.
We will need a central control room that
will include our run of mine partners as
well as our transfer partners (TFR), so it
is an integrated South African unit, and
we will make sure that all parties actually
contribute towards this digital twin. In this
way, we efficiently manage productivity.
Is this the reason you have
introduced the digital twin
system?
The digital system will eliminate waste
by enabling Belfast to produce coal
as quickly as possible, and to get it to
market as quickly as possible. Belfast is
a new mine, and that makes it easier to
introduce such a unique system.
With all the experience that the
company has gained at mines like
Grootegeluk and Leeuwpan, Exxaro has
now created an information management
blueprint. This is how we would like to
run our mines in the future. And we can
now introduce new technology that’s
available today, and that’s the advantage
that we have compared to the older mines
that we operate. We optimise
the older mines as far as we can, but at
Belfast we had the opportunity to install
the latest technology, work with the
original equipment manufacturers, and
combine all the existing knowledge to
operate the mine and plant optimally.
The central control rooms at Exxaro are
not new; however, this is different because
we are integrating all available data. And
the data is even available on devices like
my mobile phone. I am monitoring the
construction activities on site with my
mobile phone as we speak — in fact, I am
monitoring all our projects online.
Will Belfast be an opencast
mine?
There will be an opencast mine for the
first phase. In the second phase, there
could potentially be an underground
mine, but it’s early days. The pre-
feasibility study for the second phase is
still being undertaken. Our first aim is to
get the opencast mine up and running,
produce the tonnes of 2.7 million tonnes
per annum as per the design, and once we
have done that, the plan is to supplement
it with phase two. So, it is a planned and
staged approach.
Belfast is a stock standard truck and
shovel operation. The stripping ratio
is low, the coal is shallow, it is low in
phosphorous, and the quality is good — a
typical RB1 spec. It is probably the last
real good quality coal in the area.
What other projects are Exxaro
busy with?
Belfast is a greenfields site that makes
up only about R3.3-billion of the R20-
billion’s worth of projects in my portfolio.
Exxaro’s project capital is split in half
between Grootegeluk projects, close to
Lephalale in the Limpopo province,
and various projects in the Mpumalanga
province. So, for convenience sake,
let’s say R10-billion has been allocated
towards Grootegeluk and another R10-
billion towards projects in Mpumalanga.
There is a R4.8-billion expansion
project at Grootegeluk and a rapid load-
out programme of R1.3-billion, which
are both progressing well, and should
be finished by the second half of 2019.
Then there is the Thabametsi project at
Grootegeluk, which will provide coal to
the new Independent Power Producer
(IPP) coal power station in Lephalale. All
the designs for Thabametsi have been
completed. Financial close is expected
during Q2 2019, due to the IPP awaiting
‘licence to operate’ approvals, which are
required for financial close.
In Mpumalanga, we have the new
mine at Belfast, as mentioned before, and
the Leeuwpan extension project, worth
more than R600-million. Leeuwpan has
already started producing coal, ahead
of schedule and below budget, so it is
something we are very proud of. It might
seem a small project, but it means a lot for
Delmas and extends the life of mine with
more than 10 years. The Matla project in
Mpumalanga is worth close to R3.5-
billion, but Eskom provides the capital.
There is also the Mafube project, but that
is a 50/50 partnership between Anglo
and Exxaro. It is exciting to see the mine
producing first coal from that unit. The
Mafube project will add an additional 15
years to the life of mine.
We should not underestimate Exxaro’s
impact on people’s lives. The company
is investing R20-billion of its capital
in South Africa. That message needs to
be made very clear. Exxaro is a proudly
South African company that is reinvesting
in South Africa. R20-billion is more than
1% of the USD100-billion that President
Ramaphosa wants to attract investment to
the country.
FEBRUARY 2019 MINING MIRROR [37]