Wescoal, now known as the Salungano Group, operates several coal mines in the Delmas region of Mpumalanga, South Africa, including the Vanggatfontein Colliery and the Moabsvelden Colliery[6].[7]
The Vanggatfontein coal mine (VGF) in Delmas was placed on care and maintenance in early 2022 due to uncertainty regarding the renewal of its coal supply agreement with Eskom, the state-owned electricity provider[3].[5]. This agreement, a 10-year supply deal, was due to expire at the end of April 2022, with 300,000 tonnes of coal left in stockpile at the time. The supply agreement required the entire resource of the mine to be dedicated to Eskom, but negotiations for renewal had not materialized by the expiry date. As a result, Wescoal decided to reduce overhead and capital expenditure by temporarily halting operations and seeking alternative markets for the existing stockpile, while also planning to use the mine’s washing plants to process coal from the nearby Moabsvelden mine[3].[5].
Vanggatfontein has an annual capacity of about 3.6 million tonnes, with a remaining life of mine estimated at more than six years and reserves exceeding 15 million tonnes[3].[5]. Wescoal stated it would continue to engage with Eskom to potentially save jobs and support the economy of the Victor-Khanye Municipality (VKLM). Some staff were to be redeployed within the group while long-term solutions were considered[5].
The Moabsvelden Colliery is another key asset near Delmas, with operations commencing in January 2021 and first coal sales shipped in March the same year[7]. This open-pit, surface mine is also owned by the Salungano Group and has an annual production capacity of 2 million tonnes. The mine has a total coal resource of 27.62 million tonnes and mineable reserves of 24.84 million tonnes[7]. Run-of-mine coal from Moabsvelden is processed at the Vanggatfontein coal handling and processing plant, which optimizes use of existing infrastructure[7]. Moabsvelden was initially approved in 2013, transferred through several owners, and began development in earnest after Wescoal acquired Keaton Energy in 2017[7].
Wescoal’s mining portfolio in the region continues to include other assets such as the Elandspruit and Khanyisa mines, alongside ongoing development projects[2]. The company has positioned itself as a key player in coal supply to South Africa’s energy and industrial sectors[2].