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Sah - South African Coal Mining Holdings Limited - Umlabu Siding Officially

Release Date: 31/10/2008 12:00:01      Code(s): SAH
SAH - South African Coal Mining Holdings Limited - Umlabu siding officially     
South African Coal Mining Holdings Limited                                      
(Incorporated in the Republic of South Africa)                                  
Registration number 1994/009012/06                                              
Share code: SAH                                                                 
ISIN: ZAE000102034                                                              
("SACMH" or "the company")                                                      
Umlabu siding officially opened                                                 
SACMH is pleased to announce the opening of the Umlabu siding which is situated 
3km from the Umlabu coal mine in Ermelo, Mpumalanga.  The siding was opened at  
an official ceremony held today by the Chairman of the company, Thabo Mokgatlha.
The company will now be able to make significant cost savings on road haulage to
its Blinkpan siding which is 87km away from the mine.                           
Construction of the siding began in July 2008 and was completed on schedule in  
October 2008.  This marks the completion of the first phase of the company`s    
logistics capital expenditure programme announced in July 2008 to improve the   
profitability of the mine through investment in infrastructure and implementing 
a company expansion programme to meet SACMH`s growth strategy.                  
The Umlabu mine has a twenty year mine life but previously had no rail link to  
haul coal to the Richards Bay Coal Terminal ("RBCT") or to other consumers.  The
Umlabu siding will now form an efficient logistics supply chain between the mine
and all consumers, including RBCT, with an immediate capacity to rail two       
million tonnes per year, and 40 000 tonnes stockpile space.  Phase V of RBCT    
allocation of 500 000 tonnes per annum will be hauled from the siding from 1    
July 2009.                                                                      
Karl Gribnitz, Chief Executive of SACMH, commented:                             
"This is an exciting development in our infrastructure project.  The opening of 
the Umlabu siding will be followed by a second phase of infrastructure          
development which is the construction of an overland conveyor and a rapid       
loading system.  We are also currently in discussions with Transnet Freight Rail
to electrify the line between the Umlabu siding and Ermelo, thereby cutting back
on bottlenecks at the Ermelo coal line and further increasing our efficiency.   
I am delighted to say that SACMH is on track in meeting its objectives of       
becoming an efficient and profitable coal mining company.  Our infrastructure   
upgrades are ongoing and will see us making significant operational cost savings
and bring us closer to achieving our growth objectives."                        
SACMH : 011 748 2800                                                            
Melanie Steyn : 083 377 3671                                                    
College Hill : 011 447 3030                                                     
Nandile Ngubentombi : 082 825 8004                                              
31 October 2008                                                                 
Sponsor : QuestCo Sponsors                                                      
Date: 31/10/2008 12:00:01 Supplied by www.sharenet.co.za                     
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