Products & activities
Product overview
Wescoal’s current products and services include the following:
- sourcing of suitable product for clients (appropriate product for different types of coal users, i.e. electricity versus industrial);
- securing the delivery of product as and when required;
- technical support for steam generation;
- securing markets for new producers such as other junior coal miners;
- beneficiation of coal from external resources;
- hauling of coal by road through outsourced partners; and
- mining of coal
Main areas of activity
Coal trading
Through Chandler, Wescoal provides the logistical requirements for the sourcing, distribution and delivery of coal products to the general industry with emphasis on road transportation.
Chandler operates primarily in the provinces of Gauteng, Mpumalanga, Limpopo and North West.
In addition, Chandler supplies a large portion of the general industry in Swaziland. Chandler focuses on smaller domestic users that have a total coal consumption of 6 million tons per annum. For the year ended 31 March 2009, Chandler sold approximately 635,000 tons of coal (2008: 738,000 tons of coal).
Coal beneficiation
Wesmine is involved in the beneficiation of coal.
This process improves the quality of the coal, allowing the coal to be burnt more efficiently and reduces emissions such as sulphur and nitrogen oxides.
The cyclone washing plant, commissioned in May 2005, increased capacity significantly. The existing coal beneficiation facility and the cyclone washing plant operate at 76% capacity and wash an average of 26 500 tons of raw coal per month. These facilities can achieve a capacity of 40 000 tons per month at optimal production levels.
Coal mining
Wesmine acquired various coal prospecting rights during the period under review and intends to intensify drilling and exploration activities during 2008/09 in order to turn these rights into proven reserves. Coal mining will secure run of mine of a consistent quality and at reduced price for the coal washing plant.
Coal recoveries
Through the purchase of the technology licence, mineral recoveries upsizes coal fines into saleable products. Saleable products include pebbles and briquettes and these have already been successfully upsized in the pilot production plant.