Belfast

Belfast overview

Mining commenced	2019
Type of mining	Opencast
Market	Export and local market
Beneficiation	Two-stage dense medium separation (DMS) plant and crush and stack (C&S) operation
Products	CV 4 800kcal/kg and 5 300kcal/kg and 5 750kcal/kg net as received
Year-on-year RoM	↑ 19% linked with production ramp-up strategy
Year-on-year product	↑ 19% linked with production ramp-up strategy
Exploration	No exploration conducted due to drill rig unavailability based on over-commitment from contractor leading to contract cancellation
Year-on-year Resources	↓ 3% mainly as a result of depletion
Year-on-year Reserves	↓ 7% mainly as a result of depletion
Remaining LoM	10 years
Opportunities/operational excellence	Belfast licence to operate (BLTO) project prefeasibility study to be completed in 2024

Figure 2: Belfast mine

Figure 3: Belfast west-east cross-section Figure 2: Belfast mine

In 2023, Belfast achieved an annual production record of 2.91Mt versus 2.85Mt and overcame production challenges through conscientious leadership and collaborative teamwork from all the stakeholders within the value chain. Vision 2025 was launched with the purpose of driving safety and increasing production volumes to 3.5Mt.

Table 16: Belfast overview

Topic	Information
Location	10km south-west of the town of Belfast in Mpumalanga, South Africa
History	Previous ownership	Material notes
1967	Fuel Research Institute of South Africa	Coal Resource delineation drilling (25 drill holes)
1969	Trans-Natal Steenkoolkorporasie Beperk	Coal Resource delineation drilling (10 drill holes)
1975 to 1983	Gold Fields Mining and Development	Coal Resource delineation drilling (43 drill holes)
2001 to 2006	Eyesizwe	Coal Resource delineation drilling (155 drill holes)
2006 to 2022	Exxaro	Drilling to delineate Coal Resources (384 drill holes), detailed box cut designs, five-year mine plan infill drilling and life extension project. The mine produced first coal in April 2019 from pit 5. In 2019, it opened two box cuts on pit 1 and pit 7, ramping up production in 2020. In 2020, pit 2 was opened, followed by pit 4B box cut in 2021 and pit 4 box cut in 2022.
2023	Exxaro	Ramping up production as per the early value strategy.
Adjacent properties	The mineral tenure areas of Umsimbithi Mining (Wonderfontein coal mine) and Universal Coal (Paardeplaats) are to the west and north of Belfast, respectively.
Infrastructure	Belfast mine is adjacent to the N4 highway that connects Pretoria and Maputo and can be accessed from the N4 via the D1110 and D1770 district roads. The mine is adjacent to the railway line to Maputo, and nearby loading facilities connect the railway line to the Richards Bay Coal Terminal. Existing Eskom power lines are on the property for electricity supply. Water is sourced on site as per the integrated water use licence (IWUL) specification. Potable water is sourced from authorised water drill holes, and process water for dust suppression and running the beneficiation plant is sourced through dewatering from pits.
Coalfield	Belfast mine is on the far eastern edge of the Witbank coalfield. The coalfield extends about 190km east-west between Springs and Belfast and about 60km in a north-south direction between Middelburg and Ermelo. The Witbank coalfield has up to five coal seams in the middle Ecca group sediments of the Karoo supergroup. The Karoo sequence in the area is represented by the Dwyka formation and the middle Ecca with little or no lower Ecca development. The middle Ecca sequence of coal horizons, interbedded with sediments, is highly truncated due to erosion, with only minor areas where the full sequence is developed.
Main seams	S2, S3 and S4 are exploited where economical.
Seam development	Locally, three seams are mainly targeted (S2, S3 and S4). S5 was intersected in only a few drill holes in the northern part of the project area. S2, the most prevalent seam, is consistently developed, except in areas where it has been eroded. It has an average thickness of 2.6m and gently dips to the south. S3 and S4 are sporadically developed due to erosion, and both have an average thickness of 1.0m.
Depositional control	Due to the mine's proximity to the northern edge of the Witbank basin, the primary control of coal development is the current weathering surface. The deposit is divided by a perennial stream into two resource blocks under two distinct spurs in the surface topography. There is no indication of pertinent faulting from the drill hole information, but potential intrusions of dolerite dykes are outlined by regional airborne magnetics, indicating the possible occurrence of regional north-south trending dykes. There are no known geological structures that may affect the geology or coal seam continuity.
Resources and Reserves	Resources occur within most of the mining right and Reserves are limited to the southern mining right area, aligned with the existing LoMP.
Mining method	Currently, mining occurs from five open pits using the doze-over, truck-and-shovel hybrid mining method. The LoM identifies 10 opencast pits, four or five of which will operate concurrently. There are prospects for additional opencast opportunities north of the existing operations.
Beneficiation	Thermal coal is beneficiated in a two-stage DMS plant.
Product	CV 4 800kcal/kg, 5 300kcal/kg, 5 750kcal/kg air-dried and filter cake.
Market	Export market and domestic market.
Mining right	Belfast has an approved mining right that covers 5 819.18ha.
Environmental approvals	All environmental appeals have been favourably addressed for the declared Reserves.
Projects/feasibility studies	The BLTO, previously Belfast life optimisation (BXP), pre-feasibility study progressed well and is anticipated to be completed in 2024. Future studies will address: Securing surface rights Securing environmental approvals

Resource estimation

Table 17: Resource estimation methodology and reporting

Process		Information
Drilling, logging and sampling		Since 2019, most vertical surface drill holes have been wireline logged per Exxaro’s procedure. Drilling mainly focuses on delineating the split between soft and hard OVB to support geotechnical characterisation and enhanced seam roof and floor mapping to delineate areas of seam floor rolls, seam thinning, seam thickening and seam pinching. We take photographs of the core after marking it. Geological information is captured on log sheets with lithology captured up to centimetre scale with detail. Sampling is conducted on site with the aid of wireline logs.
Laboratory and accreditation		SGS and SANAS T0561
Laboratory dispatch and receiving process		All the samples are collected, bagged and delivered to the laboratory for analysis accompanied by a dispatch sheet. The dispatch sheet also contains the sample advice that guides the laboratory on which analyses will be conducted on the samples. The receiving laboratory personnel sign the dispatch sheet to ensure chain of custody. Once the laboratory receives and signs the dispatch sheet, it is responsible for safekeeping and storing that batch of samples.
Laboratory QAQC		We ensure data integrity through rigorous procedures and supervision while processing. Audits are performed internally and externally as part of the assurance and control process. SGS is accredited for analytical work and participates in monthly local and international round robins.
Data datum		WGS 84 – LO29
Drill hole database		acQuire
Number of drill holes in mining right		816
Number of drill holes used for Resource estimation		687
Number of drill holes used for classification 388		388
Data compositing and weighting		Data compositing is conducted per seam using a weighted value from individual samples that make up the seam, along with each sample's relative density and length. This is conducted in GEOVIA Minex™.
Data validation		Conducted using queries in acQuire, Minex™ and Excel
Geological modelling software		GEOVIA Minex™
Estimation technique		Growth algorithm
Previous model date		2018
Last model update		2022
Grid mesh size		25m x 25m
Scan distance		2 000m
Data boundary		200m
Model build limits		Upper: limit of weathering and topography/collar Lower: basement/Dwyka
Model outputs		Roof, floor and thickness grids generated for structure Raw and wash quality grids
Changes to modelling process		None
Thickness cut-off and extraction height considerations		Opencast ≤0.5m
Quality cut-offs (adb)		Ash ≥50%
Geological loss applied		5%

Table 18: Resource classification criteria

Category	Type of drill holes	Drill hole spacing	Structurally complex areas	Drill holes/ ha
Measured	Cored drill holes with applicable coal qualities	0m to 350m	May be more conservative after consideration of RODA	0.16
Indicated	Cored drill holes with applicable coal qualities	350m to 500m	May be more conservative after consideration of RODA	0.01
Inferred	Cored drill holes with applicable coal qualities	500m to 1 000m	May be more conservative after consideration of RODA	0.02

Table 19: RPEEE considerations

Item	Criteria	Criteria met	Comment
Geological data	Data has been validated and signed off by Competent Person.	Yes	Considers geological structures and depositional extent, as well as seam thickness ≤0.5m, ≥50% ash content with coal qualities reported on an adb.
Geological model	Geological model has been considered and signed off.	Yes	2022
Structural model	Structural model was considered and signed off.	Yes	2022
Mining	Mining assumptions were considered and defined.	Yes	Opencast
Assurance	Exxaro internal review and external audit conducted.	Yes	Internal review in 2022 and external audit by EY in 2020.
Economic evaluation	Exploitation study with economic and mining assumptions, including geotechnical and geohydrological assumptions.	Yes	Belfast’s pit layouts were revised in 2023 to address operational challenges and improve the Reserve utilisation.
Environmental	Reasonable demonstration that environmental approvals can be obtained within the context of local, regional and national governmental legislation.	Yes	Environmental management plan, IWUL and National Environmental Management Act, 1998 (Act 107 of 1998) (NEMA) licences are in place and compliant.
Tenure	Formal tenure must be a reasonable demonstration that a mining right approval can be obtained within the context of local, regional and national governmental legislation.	Yes	Tenure is secured. Surface rights are secured for majority of current LoM with outstanding surface rights for two portions under procurement negotiations. For the BLTO Reserves, surface access is secured and surface acquisitions are in process.
Infrastructure	Assumptions used should be reasonable and within known or assumed tolerances or have examples of precedence.	Yes	Existing infrastructure is adequate or can be upgraded with new required infrastructure under construction.
Market	Potential market for the product with a reasonable assumption that this market is sustainable.	Yes	RB2, RB3, RB4 and filter cake.

Reserve estimation

Table 20: Reserve estimation

Topic		Information
Software		Open Cut Coal Solution (OCCS)
Reserving process		Scheduling of Reserves is determined using a mining scheduling application (Scheduler) from OCCS, the same software used to develop the LoMP schedule. The geological 3D model used for the Resource statement is referred to as the Reserve geological 3D model. The geological model is supplied to mining, projects and technology in the form of Minex™ grids. The grids are then imported into a reserving application (Reserver) from the same OCCS software. This application validates the geological information received by checking the integrity of the geological structure and its quality, ensures wash table values are consistent, and converts the geological 3D model into mineable block sizes.
Conversion classification		Indicated Resources are generally converted to Probable Reserves and Measured Resources to Proved Reserves after considering the applicable modifying factors. If one or more of the modifying factors have not been fulfilled, the Measured Resource is either not converted or the Measured Resource is converted but downgraded to Probable Reserves and the associated risk is clearly stated. Inferred Resources are not converted to Coal Reserves.
Inferred Resources inside LoM		1.0Mt of Inferred Resources are included in the LoMP, representing 2.9% of the LoMP, and are not considered material. Inferred Resources, on the western edge of the pit, will only be reached towards the end of LoM.
		Modifying factors
Average thickness cut-off		S2 ≤0.8m, S3 and S4 ≤1.0m
Quality cut-offs		No quality cut-offs. Economic cut-offs are applied.
Mining loss		0.1m
Boundary pillar		N/A
Dilution		0%
Contamination		0.1m
Mining recovery efficiency		100% (already accounted in mining loss)
Planned average slope angles		90 degrees on hards and on softs (there is a 45m-wide bench between hards and softs, as softs are stripped a strip ahead of intended/planned hards face).
Practical plant yield		Considered in the reserving process, as per the wash table data.
Strip ratio cut-off		Considered in the reserving process using the economic model, developed during the exploitation strategy, to get economical mining boundaries.
Environmentally sensitive areas		Areas considered based on the applicable environmental approvals.
Legal		Applicable mining right considered, and all the reserved areas are within the mining rights boundary and have obtained the water use licence thereof. The purchase of two portions of surface rights is pending.
Social		Grave site identified; no impact on the Reserve as final void stockpiles were relocated on design proposal. The last family on the Reserve is still to be relocated and the process is at an advanced stage.
Geohydrological		Applicable surface and groundwater models considered.

Table 21: Belfast Coal Resource and Coal Reserve statement

Category	2023 (Mt)	2022 (Mt)	Difference in tonnes (Mt)	Difference (%)	Reason for change
Measured	98.4	101.6	(3.2)	(3)	Mining depletion (3.3Mt) and geological loss as a result of weathered coal in pit 4 (0.1Mt) were slightly offset by reconciliation (0.3Mt).
Indicated	8.0	8.0
Inferred	13.3	13.2
Total Coal Resources	119.7	122.8	(3.2)	(3)
Proved	33.2	35.8	(2.6)	(7)	The decrease is mainly due to mining depletion (3.3Mt) that was slightly offset by model refinement (0.4Mt) and reconciliation (0.3Mt).
Probable	1.4	1.4
Total Coal Reserves	34.6	37.2	(2.6)	(7)

•	Rounding of figures may cause computational discrepancies
•	Tonnages are quoted in metric tonnes and million tonnes (Mt). Coal Resources are quoted as MTIS

Exploration summary

Table 22 outlines the exploration for the reporting year. For detailed expenditure, refer to Table 64.

Table 22: Exploration summary

Objectives	Progress in reporting year	Plans for next reporting year

Total Coal Reserves	No drilling was conducted in 2023	51 drill holes are planned as infill drill holes in the current operating pits and to increase resource confidence in future planned opencast pits.

Risks

Table 23: Belfast risks

Risk	Description	Mitigation
Surface rights	Securing surface rights in current LoM areas over portions 9 and 15 of Leeuwbank 427JS.	Property valuation concluded on both properties and negotiations in progress. Capital for the procurement of these properties has been included in the 2025 capital programme.
Encumberments on the Reserve	Relocation of last residents on the Reserve.	Relocation process in advanced stages with reasonable expectation that Exxaro will be successful.
Transnet Freight Rail (TFR) performance	TFR offtake was lower than planned.	Alternative market offtake agreements to mitigate poor performance from TFR reoccurring in 2024.
Qualities	Sporadic sulphur challenges experienced within mining blocks.	Planning for blocks that have low sulphur. Investigating opportunities to blend coal from different blocks. Intensive in-pit sampling programme before coal is dispatched to C&S. Investigating alternative markets that allow for a 1.2% sulphur product.

Other than the risks listed on the previous page, there are no known environmental, social, political and governance risks that could potentially impact the exploitation of the Coal Reserves.

Operational excellence

Belfast experienced several challenges at the start of the reporting year that impacted production targets. In response, Belfast implemented several actions that contributed to a record production second half of the year and steady state for the operation. The appointment of new mining partners in a short period and steep ramp-up curve for production resulted in an annual production record of 2.9Mt within only nine months. A process implemented to fully integrate the mining partners and operational team across the mining value chain clearly communicated extraction plans, and visualisation of progress supported this great achievement. The foundation of inclusivity, teamwork, accountability and production excellence has driven the team to achieve this great milestone and set the platform for future performance.

Buffer silo between Mine 1 and Matla power station

From the left: Pateka Themba, Jonathan Stewart, Zwele Hlatshwayo, Alf Dednam (Belfast Reserve Competent Person), Gcobani Gcayi (Belfast Resource Competent Person) and Vaughn Collins, Resource and Reserve technical specialists from our MAM and coal teams