WESCOAL HOLDINGS LIMITED - Wescoal delivers first own coal sales from Moabsvelden

Wescoal delivers first own coal sales from Moabsvelden

WESCOAL HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number 2005/006913/06)
Share code: WSL
ISIN: ZAE000069639
(“Wescoal” or the “Company”)

Wescoal delivers first own coal sales from Moabsvelden

Shareholders are referred to the voluntary SENS update of 25 January 2021, in terms of
which, Wescoal indicated that production from the Moabsvelden mine was anticipated in
Q4’FY21. Wescoal is proud to inform shareholders that it successfully performed first coal
blast at Moabsvelden which led to first own coal sales delivery to Eskom Holdings SOC Limited
(“Eskom’”) on Friday, 12 March 2021.

“The operationalisation of the Moabsvelden project under a difficult operating economic
environment represents a significant milestone in the history of Wescoal, since the acquisition
of Keaton Energy Holdings Limited in 2017. The first truck load to the power utility was a
momentous event for everyone involved in the project implementation”, said Mr Thivha
Tshithavhane, the CEO of Wescoal Mining.

The project development work commenced in June 2020 pursuant to the 10-year coal supply
offtake award by Eskom in July 2019. An owners’ team comprising of internal and external
multi-disciplined resources was tasked with operationalising the project, with the first major
task involving the appointment of a contract miner for the boxcut development. The team,
under the leadership of Mr. Enos Lentsoane, the Executive Head of Commercial and
Investments, designed and ran a competitive bidding process for the contract miner selection
and other contractors for the auxiliary infrastructure development work.

Wescoal values its relationship with the communities where it mines. Moabsvelden is in
Delmas and falls under the Victor Khanye Local Municipality (“VKLM”). All the early-works
infrastructure development workstreams were earmarked for suitably qualified VKLM
contractors. In addition, a tripartite forum was set up between VKLM community structures,
Moabsvelden and the boxcut contract miner to specifically deal with project development
issues and community participation.

Moabsvelden is expected to contribute three (3) million tonnes per annum of mined coal
towards Wescoal's production capacity and presents a new growth opportunity for all our key
stakeholders, namely shareholders, employees, and communities.

The early-works auxiliary infrastructure projects have been completed and the construction of
a pollution control dam is currently underway. Additional development workstreams planned
for the next few months include a road intersection, weighbridge, workshop, and office prefabs
construction. These will support the ramp-up plan to 160 000 tonnes a month of saleable
product by July 2021.

“The operationalisation of Moabsvelden is in line with the scalability strategic pillar of the
business. Management’s priorities also remain to strive for safe and reliable operations, solid
and predictable financial performance 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 growth plans.”, added Mr
Robinson Ramaite, the Interim Group Chief Executive Officer.

Shareholders can visit the Wescoal website at www.wescoal.com to view pictures and videos
of Moabsvelden project development.

Shareholders are advised that the financial information included in any forecasts made, has
not been reviewed or reported on the Company’s auditors.



18 March 2021

Sponsor
Nedbank Corporate and Investment Banking


IR Advisor
Singular IR

Date: 18-03-2021 08:30:00
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