Heritage Cases

Balgray Project motivation The operational phase of the Balgray project will have a lifespan of approximately 5-7 years. The resources of the current Aviemore mine (operated by Zinoju Coal) will be depleted by mid-2022 and the jobs at the mine will be absorbed in the Balgray project. If the project does not proceed, all of these jobs (225 permanent employees) will be loss and the livelihood of these people and dependents will be depleted which will increase unemployment in the Dundee area. Approximately 25 direct additional temporary jobs will be created during the construction phase, sourced from Dundee and surrounds. The mine’s operational expenditure (OPEX) is estimated at around R11m per month. An estimated 45% of the colliery’s OPEX will be spent in Dundee and 35% in the other parts of Endumeni and Dannhauser municipalities Moreover, if the project does not proceed the Coalfields coal processing plant in the Dundee industrial area currently used to process coal from Aviemore will have to close down due to the mine not proceeding after 2022 and the Head Office will also close down. This will result in a further 250 job losses, with total job losses estimated at 606 employees (including contractors). Again, the Balgray project is a crucial project to prevent job losses and to protect the livelihoods of the employees as well as numerous dependents. The Balgray project will also generate the required funds for the development of the North Adit project on the northern side of the Mpati Mountain which will retain the employees at the Balgray project and create additional 250 employment opportunities (total 500 people employed on a permanent basis). The North Adit project is planned to commence in 2025 after the required funds have been obtained from the Balgray project and the potential socio-economic benefits will already be achieved during this time. The North Adit project will have a lifespan of 13-15 years with additional resource potential. Therefore, the Balgray project is a stepping stone for a long-term strategy (>20 years) to create sustained employment for current and additional employees. All employees from the Balgray project will be moved to the North Adit project. The mined coal (anthracite) will be predominantly for export markets which is in line with national and provincial imperatives around increasing coal exports. The coal will be sold prior to being exported to foreign markets. Exporting the product allows the country to earn forex and positively impacts the country’s Balance of Payment (BoP) position.