Black-owned joint venture develops R3bn coal mine
Goedgevonden, a new mine in the Witbank coalfield, will create more than 1100 jobs during the construction phase and 300 permanent jobs when fully operational, said African Rainbow Minerals and Xstrata Coal.
The R3billion mine will be developed by a majority black-owned and controlled joint venture, the Goedgevonden JV, of which ARM Coal owns 51percent and Xstrata Coal the remaining 49percent.
ARM chairman Patrice Motsepe said: "This is a significant milestone for the ARM growth programme, particularly with respect to our recent investment into coal."
Xstrata Coal is facilitating ARM Coal's participation in the Goedgevonden project by providing all the funding required to reach commissioning during the first half of 2009.
ARM Coal has been successful in obtaining 3,2million tons per annum of export capacity at Richards Bay Coal Terminal.
Xstrata Coal chief executive Peter Coates said: "The Goedge-vonden mine, the first of its kind to be undertaken by a majority black-owned and controlled company, will benefit from state-of-the-art infrastructure and will be a high-productivity, low-operating cost business.
"Goedgevonden will be very competitive in the Atlantic market and is well positioned to compete in the domestic thermal market, given that the (Goedgevonden) JV fully complies with BEE procurement criteria," Coates added.