Black-empowered coal producer Mashala Resources at the
Raymond Mill weekendhosted a function to showcase the completion a R6,5-million upgradeat its Delta Siding in Ermelo, Mpumalanga.
The siding is set to increase dispatch capacity and improvetransport efficiencies along Spoornet's coal line to the RichardsBay Coal Terminal (RBCT).
Present at the launch was Spoornet CEO Siyabonga Gama, whocommented that the firm now complies with all relevantexport-coal requirements imposed by Spoornet and the Department ofMinerals and Energy.
In addition, the State-owned rail operator will use the new sidingas a benchmark for similar initiatives on the RBCT.
Chairperson of the coal firm, Mpho Scott commented that the upgradewill significantly improve despatch capabilities (and)increase transport efficiencies for Spoornet through Richards Bayand will service the need of other BEE players in the Eremeloarea.
We aim to play a leading role in growing the company tobecome a significant player and exporter of note.
This upgraded Delta Siding contributes towards Mashalaattaining its objectives.
Mashala - which means coal in Sotho - has plans to bring on streamat least three new mines in the next three to five years.
Its operations are in the Mpumalanga and Kwazulu-Natal provincesbut it
Sand Making Machine aims to become a dominant player in the Ermelo area.
The company is already a supplier to Eskom with contracts to supplycoal to Majuba and Camden power stations.
CEO Dave Deetlefs indicated that the firm has set goals for growth:Our aim is to become a significant player in the SouthAfrican coal industry so that by 2015 we will be producing10-million tons per annum.
The company, he says, forecasts a turnover of R200-million for the2006 financial year.
Mashala, which was established two years ago, first received RBCTand Spoornet usage entitlement in 2004 and is currently entitled toexport 150 000 t a year, which is likely to increase to 300 000 t ayear in 2006.
Like other smaller BEE coal producers, its ability to export coalwas limited because of a lack of sufficient port and railcapacity.
Enhanced access to the RBCT line through the Delta siding willprovide Mashala with the opportunity to handle increased coalexport volumes efficiently as it aims to participate in RBCT'srecently announced 20-million-ton expansion program.
Deetlefs says: The decision to invest R6,5-million toupgrade the siding at our Delta Processing and Despatch Centreenables us to service both our own requirements and to providetoll-despatch facilities for other BE players in the Ermelo areawho do not have a siding and, as a consequence, are restricted fromaccessing export markets via the RBCT line.
The siding is one of the largest private sidings in the
Raymond Mill Ermelo areaand is situated on the RBCT coal line, allowing the firm todespatch up to 2,5-million tons a year operating 24 hours a day,seven days a week.
Speaking at the opening, Mpumalanga MEC for Public Works KwatiCandith Mashigo-Dlamini said, as Government, we are indeedcommitted and dedicated to make sure that Mashala Resources isprovided with the necessary assistance for the economic growth ofthis Province.
Gama added, "Spoornet is dedicated to ensuring economic growththrough providing an efficient transport platform that facilitatestrade growth in South Africa.
And indeed, we see the RBCT expansion to 92-million tons perannum as an exciting opportunity for both Spoornet and the SouthAfrican coal-mining industry, and more specifically the emergingexport coal miners such as Mashala Resources.
The company has already facilitated the creation of 250 jobsfollowing the decision to reopen the Wesselton and Geluk mines andthe upgrading of the Delta facility.
Modirapula Investments, a 100% black-empowered company recentlyacquired a five per cent stake in Mashala with an option toincrease its shareholding, which is in line with the coal firm'sambition to have more than half its ownership in black hands by2007.
Mashala's 27,2% black-empowered shareholders include ModirapulaInvestments, Calulo Investments, Helang Basadi and management. In2003 RBCT, which is owned by the major coal producers, agreed tomake export entitlement available to emerging BE producers, atincreasing annual levels up to 4-million tons a year in 2006.
Earlier this month, RBCT announced that by 2008 it would increaseits capacity from the current level of 72-million tons to92-million ton a year. In addition, Spoornet will enhance itsrolling stock and traction power to service the increased level ofexport activity.
