Infrastructure

Rail logistics

The Mooiplaats operation utilises the nearby Umlabu siding to facilitate railings to their export markets and third-party exports of the high-grade coal. In addition, the siding at Woestalleen has a design capacity in excess of 4Mtpa and can handle Richards Bay Coal Terminal (RBCT) trains.

Both the Maputo and RBCT corridors use the ring-fenced wagon fleets allocated to these corridors.

At Vele, coal will initially be transported to an existing rail siding approximately 50km from the colliery and a rail option has been investigated should the colliery be expanded beyond Phase 1 capacity. At Makhado, construction of a short rail line of approximately 20km, to the existing rail line, is envisaged but the feasibility is nearing completion.

Currently, all the sites are delivering coal under various agreements with Transnet Freight Rail (TFR) but the Company has been in discussions with TFR to look for a longer-term solution which may include private-sector participation in the capital spend required to optimally and cost-effectively run the various corridors where the Company is operating.

The existing railway line to Matola has capacity of about 6Mtpa to 8Mtpa before further upgrades.

Port infrastructure and capacity

Coal of Africa Limited (CoAL) has secured 3Mtpa allocation through the Matola terminal in Maputo, Mozambique.

Current port capacity is 6Mtpa with 4.5Mtpa allocated to coal and 1.5Mtpa to magnetite. CoAL has secured an option over future expansions at the terminal of up to 100% of the potential increased capacity.

CoAL and Grindrod have signed an agreement that, while CoAL's option to take up capacity for any Phase 4 expansion at the TCM export terminal in Maputo remains intact, CoAL is no longer obligated to fund its own share of the capital for the Phase 4 expansion.

Woestalleen also has access to 207kt per annum capacity via the RBCT Quattro entitlement.