Integrated report 2019
Exxaro Resources Limited
Consolidated Mineral Resources and Mineral Reserves Report
Coal Resources and Coal Reserves quoted for Exxaro-managed assets fall within existing Exxaro mining or prospecting rights.
Rights are of sufficient duration (or convey a legal right to convert or renew for sufficient duration) to enable all Reserves to be mined in line with current production schedules. The only exceptions are Grootegeluk (granted in April 2009 for 30 years), Thabametsi (granted in 2016 for 30 years), Matla (granted in November 2009 for 10 years), Dorstfontein (granted in December 2006 for 30 years) and Forzando (granted in November 2011 for 16 years) where adequate Coal Reserves exist for life-of-mine (LoM) plans extending well beyond the period for which they were granted. Exxaro prospecting and mining authorisations are managed to ensure reporting compliance as required by the Mineral and Petroleum Resources Development Act and the National Environmental Management Act, 1998 (Act 107 of 1998).
The status of prospecting and mining rights indicating the right type, name, reference number, status, expiry date and ownership (percentage attributable to Exxaro) is presented in Table 79 and Table 80 (Appendix A). The prospecting and mining right boundaries are also outlined in the discussion of individual operations and projects in the ancillary section.
Exxaro manages several operations in Mpumalanga (Figure 5 above).
Arnot is currently under care and maintenance. The converted mining right is executed but registration is pending. The right was timeously submitted for registration but referred to correct historical property-naming conventions. The corrections were made, and the right was resubmitted for registration. In May 2019, Exxaro received consent from the Minister of Mineral Resources and Energy, in terms of section 11 of the Mineral and Petroleum Resources Development Act, for cession of the mining right for the Arnot coal mine to a consortium that will benefit its former employees following the expiry of the CSA with Eskom in 2015. The transfer of the mining right has not yet been completed as some conditions precedent are in the process of conclusion. Exxaro has reasonable expectation that the outstanding conditions will be achieved in the first quarter of 2020.
Matla's mining right lapsed in November 2019 and a fully compliant mining right renewal application was timeously submitted in August 2019. Exxaro has reasonable expectation that the right will be granted.
The converted mining right and adjacent new mining right at Leeuwpan mine have been executed and registered. Approval of ministerial consent (section 102 of the Mineral and Petroleum Resources Development Act) submitted to amalgamate the two rights has been granted, and execution is pending.
The ECC complex comprises the Dorstfontein, Forzando and Tumelo operations.
The Dorstfontein complex comprises three mining rights. The mining rights of Dorstfontein West (123MR executed in June 2012), Dorstfontein West and Vlakfontein (119MR executed in June 2012) and Dorstfontein East (51MR executed in December 2006) were granted for 30 years. The prospecting right of Rietkuil Vhakoni (1916PR) is currently under review.
The Forzando complex comprises two mining rights, Forzando South (380MR) and Forzando North (381MR), both granted in November 2011 for 16 years. Applications to renew the prospecting right of Legdaar (1846PR) and Vlaklaagte (1140PR) were timeously submitted and approvals are pending. The Kalabasfontein prospecting rights (1170PR and 1035PR) are currently under review.
ECC also holds a 49% interest in the prospecting right of Schurvekop (1063PR) with Mmakau Coal as the majority owner. A mining right was submitted by Mmakau Coal in 2016 and approval is pending.
The Tumelo mining right was registered in January 2013 and lapsed in 2015. A renewal was timeously submitted, approval was granted in early 2019 and executed in August 2019.
Figure 6: Locality map for ECC mining and prospecting rights
Exxaro manages the Grootegeluk complex, which includes Grootegeluk and the adjacent Thabametsi mining rights (Figure 4 above).
The converted Grootegeluk mining right (46MR) was executed in March 2011 and registered in May 2012 for a period of 30 years. An approval for ministerial consent (section 102 of the Mineral and Petroleum Resources Development Act) was submitted in September 2017 to include two mine dump areas that currently fall outside the mining right. This consent has been granted and execution is pending. Thabametsi, a development adjacent to Grootegeluk, was granted a mining right (10013MR) for 30 years. The mining right was executed in June 2016 and registered in July 2016.
The Waterberg prospecting rights are grouped in two projects: Waterberg North and Waterberg South. All the Waterberg North prospecting rights (Pentonville: 10719PR, Carolina: 10718PR and Dartmoore: 10720PR) as well as the Waterberg South prospecting right (Swelpan: 10721PR) have been granted. Exxaro has, however, relinquished the rights and these projects are in closure.
The Moranbah South project area in Australia includes two mineral development licences (MDLs 277 and 377) and one exploration permit for coal (EPC 548). MDL 277 will expire in July 2021, MDL 377 in September 2023 and EPC 548 in February 2022. The Moranbah South project also previously included EPC 602. Renewal of EPC 602 was refused by the Department of Natural Resources, Mines and Energy and as a result expired on 31 December 2018. Since the granting of the MDLs, on-site exploration activities (drilling and seismic, among others) have focused within the areas of the MDLs. The area solely subject to EPC 602, deemed less prospective and not required for mining infrastructure, was not subject to on-site exploration activity or significant expenditure. Non-renewal of EPC 602 does not affect the Coal Resource estimate as tonnes were only reported within the MDLs.
Figure 7: Locality of the Australian MDLs and EPCs
