WESCOAL HOLDINGS LIMITED - Wescoal's Khanyisa Complex delivers first coalRelease Date: 24/05/2017 14:39:00 Code(s): WSL
WESCOAL HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number 2005/006913/06)
Share code: WSL
(?Wescoal? or "the Company")
Wescoal?s Khanyisa Complex delivers first coal
Wescoal?s voluntary strategic and operational SENS update on 12th January 2017 indicated that
production from Khanyisa Colliery is subject to regulatory consents from the Department of Mineral
Resources. The Company is pleased to announce that these consents have been granted. Mining
activities have commenced in the Khanyisa ?Catwalk? as well as the adjacent Khanyisa ?Triangle?
areas near Ogies in Mpumalanga (collectively the Khanyisa complex?). This is a significant milestone
in the Company?s expansion programme. Production from the enlarged Khanyisa complex will ramp
up to 100,000 ROM tons per month over the next six months.
Khanyisa Catwalk is wholly owned by Wescoal while Khanyisa Triangle is 100% owned by Aztolinx
(Pty) Limited (?Aztolinx?), an incorporated joint venture vehicle in which Wescoal owns 35%. The
Aztolinx initiative is 85% black owned and is in line with Wescoal?s commitment to transformation
Wescoal CEO, Waheed Sulaiman says significant operational synergies between the two operations
will be unlocked, allowing the Khanyisa complex to be mined more efficiently while extending the
mine life to more than five years.
Mining activities will be managed by Wescoal with a ROM production target of 100,000 tons per
month within six months. Crushing and screening activities have been contracted to Mwelase Mining (Pty)
Limited, a 100% black owned company. Aztolinx will oversee marketing initiatives. Short-term off-take
agreements have been put in place while longer term contracts are being negotiated with various
The Khanyisa complex is close to both Kendal and Kusile power stations, as well as Kendal siding and
the Richards Bay export rail network. These factors, coupled with the majority black ownership
component, augurs well for securing favourable long term coal supply contracts in various markets
including Eskom, the non-Eskom domestic and export coal markets.
Management?s priorities remain to strive for safe and reliable operations, solid and predictable
financial performances, re-alignment of the trading business to Wescoal?s needs and to maximise
value from the existing asset base. Planning and executing projects in a conservative, risk-based
manner will continue to form the basis on which Wescoal will manage and realise value from its
Wescoal remains an active participant in the consolidation of the domestic junior coal mining sector
with respect to reviewing value enhancing opportunities.
24 May 2017
Nedbank Corporate and Investment Banking
Singular Systems IR
Date: 24/05/2017 02:39:00 Supplied by www.sharenet.co.za
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