Heritage Cases

This earlier schedule will require the development of some infrastructure in locations other than those specified in the EMP and WUL, including an offloading facility and link to the Kusile Main Feed conveyor at the mine’s boundary with Kusile Power Station. Pit D will be mined through from the adjacent Klipfontein Colliery. The coal mined from Pit D and Pit H will be trucked to Kusile Power Station and other end users. To give effect to these proposed changes, New Largo must apply for amendments to its approved EA and prepare an updated EMPr. New Largo must also apply for a WUL to accommodate additional water uses not previously authorised by the DWS. New Largo Coal (Pty) Ltd (New Largo), a consortium comprised of Seriti New Largo (45%), the Industrial Development Corporation (22.5%), Coalzar (22.5%) and the New Largo Coal Employee and New Largo Coal Community Trusts (5% each), is the holder of an existing right to mine coal over various farm portions within the Victor Khanye and eMalahleni Local Municipalities, Mpumalanga Province. The New Largo Coal Mine was previously owned by Anglo American Inyosi Coal (Anglo). Anglo obtained a mining right for the New Largo Coal Mine through an environmental impact assessment (EIA) process undertaken in terms of the National Environmental Management Act 107 of 1998 (NEMA) and the Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA). The Mpumalanga Department of Economic Development, Environment and Tourism (MDEDET), now Mpumalanga Department of Agriculture, Rural Development, Land and Environmental Affairs (M-DARDLEA), granted Anglo an Environmental Authorisation (EA) in 2012. The Department of Mineral Resources (DMR) in 2013 approved the environmental management plan (EMP). Furthermore, the Department of Water and Sanitation (DWS) issued three Water Use Licences (WULs) between 2013 and 2015. Thereafter, Anglo put the New Largo Coal Mine project on hold and submitted requests for extension of the validity of the authorisations to the Regulators. New Largo Coal (Pty) Ltd acquired the New Largo Coal Mine Project from Anglo in August 2018 and subsequently commissioned a Bankable Feasibility Study (BFS) of Pit H to re-evaluate the deposit as a standalone mining operation, and a separate BFS for the remainder of the mine (referred to as the Main Mine). New Largo Coal now proposes to amend the original mine schedule to commence mining of Pit H and Pit D at an earlier date than the timeframes stipulated in the original mining schedule. This earlier schedule will require the development of some infrastructure in locations other than those specified in the EMP and WUL, including an offloading facility and link to the Kusile Main Feed conveyor at the mine’s boundary with Kusile Power Station. Pit D will be mined through from the adjacent Klipfontein Colliery. The coal mined from Pit D and Pit H will be trucked to Kusile Power Station and other end users. To give effect to these proposed changes, New Largo must apply for amendments to its approved EA and prepare an updated EMPr. New Largo must also apply for a WUL to accommodate additional water uses not previously authorised by the DWS. New Largo has appointed Golder Associates Africa (Pty) Ltd (Golder), an independent environmental assessment practitioner, to undertake the EA/EMPr amendment process and WULA. Key changes to existing authorised project: The following key changes to the existing authorised project are being applied for via the amendment application:  The planned commencement of mining is now through Pit D and Pit H, which per the original Life of Mine (LOM) plan, were to be mined at later stages.  Because mining is now starting at Pit H, the following infrastructure is necessary to support mining at this location (since the authorised main mine infrastructure area and beneficiation plant will now also only be developed at later stages):  Mobile in-pit crusher infrastructure, including haul roads, access roads, product stockpiles, destoning plant, Pollution Control Dams (PCDs) with a silt trap for dirty water management. Reject material from the destoning plant will be backfilled into Pit H as part of the approved rehabilitation plan.  The extent of Pit D has been defined. No new infrastructure is required; this pit will be mined through from the neighbouring Africoal SA (Pty.) Ltd. pit, whose existing infrastructure will be used to support mining at Pit D.  The overland conveyor system will not be constructed until later in the project lifetime. Instead, coal will be trucked from Pits D and H. Phase 0 has been added to the Project which entails the construction of an offloading facility and link to the Kusile Main Feed conveyor adjacent to Kusile Power station, as well as the (authorised) northern access road. The amendment to the mine schedule and development of additional infrastructure will enable New Largo to access higher grade coal reserves at an earlier stage of the life of mine than envisaged in the original mine plan. This is essential as coal currently provides for most of South Africa’s primary energy needs. The target destinations are expected to be Eskom (Kendal and Kusile Power Stations) and other power producers within South Africa but may vary as market conditions dictate from time to time. The mine will potentially contribute to the reduction of the domestic shortfall of coal, helping Eskom to ensure a sustainable supply of power, which the South African economy depends on.