Exxaro - Sasol unit sign coal mine deal

Thu, 02 Jul 2009

Exxaro, one of the biggest suppliers of coal to Eskom, has signed a joint venture agreement with Sasol Mining that could lead to the development of a mine double the size of Exxaro's Grootgeluk coal mine. Exxaro financial director Wim de Klerk said Project Mafutha, which would supply Sasol Mining's new planned coal-to-liquid project, would be a huge project, producing 20-million to 30-million tons of coal a year. The coal-to-liquid project is intended to produce about 80 000 barrels of fuel a day. The partners said the development should help to meet South Africa's growing shortfall in domestic fuel production, especially in diesel and petrol. South Africa has been importing refined fuels in recent years to supplement local production.