Coal mining groups Anglo Coal and Eyesizwe yesterday launched a 50:50 joint venture to develop and mine the Arnot North coal reserve, 30 km east of Middelburg in the coal-rich Mpumalanga Province of South Africa.

The initial cost of establishing the mining operation, known as Mafube, is expected to amount to about R26-milion.

The initial operation is expected to produce 1,2-million tons of coal a year and supply Eskom’s Arnot power station. It will employ about 150 people.

At the same time, it was also announced that a feasibility study to establish a R1,6-billion opencast mine on the Mafube Coal reserve will be launched.

It is expected that an expanded operation could produce between 2,5-million and 3-million tons of coal a year for export through the Richards Bay Coal Terminal. This would be in addition to meeting the ongoing obligation to supply 1,2-million tons a year to the power station.

This project will have a life of about 23 years and employ about 1 000 workers in three to four years.

Also announced yesterday was a BEE transport venture called the Nomakanjani Logistics Company, which is a partnership between Anglo Zimele, Unitrans Freight and BEE groups Imbani Transport Solutions and Bakgocsi Holdings.

Nomakanjani recently secured a three-year contract to load and haul about 3,6-million tons of coal from Mafube to Arnot Power Station.

The contract is expected to generate revenue of more than R40-million over the 36 months and returns are anticipated to meet market-related investment expectations. This contract will create about 30 jobs.

Unitrans Freight and Imbani Transport Solutions have each acquired 30% in the new business while Anglo Zimele and Bakgotsi Holdings have acquired 26% and 14% respectively.

Speaking at the launch, Minerals and Energy Minister Phumzile Mlambo-Ngcuka said the country’s steam-coal industry had survived and was still going strong following many challenging years mainly caused by lower international prices for this commodity.

“I believe it is now poised to grow and become more competitive than ever before,” she said.

“The coal industry’s economic empowerment component was only 9% until last year, but is growing fast and the department is forecasting an increase to at least 30% by the end of 2004,” she said.

“I also know that the coal market indicators are all positive and that, in Europe, our main customer for steamcoal, demand is still growing. And, although prices have now stabilised after an incredible increase of at least 145% in less than a year, the following year will probably bring more increases although not as spectacular.” Lazarus Zim, deputy CEO of Anglo American, said that these major new business ventures were outstanding examples of asset-level broad-based empowerment.

He said they had been created as long-term ventures and were designed to foster the formation of meaningful partnerships that ensured sustainable commercially-viable businesses, powered by people with passion and an entrepreneurial spirit.

Also speaking at yesterday’s launch Eyesizwe CEO Sipho Nkosi said the venture was an example of a new-generation empowerment deal, which set the tone for the future.