coal
53
07.13
with all size fractions being beneficiated. Further
design considerations included quality management
and environmental protection, with an onsite labora-
tory and zero-effluent discharge.
Yields
Full washability testwork was carried out on the
various coal seam core samples. The results were im-
ported into the Minex™ coal simulation program and
used to assess the yields and resultant product speci-
fications. These results were utilised for the determi-
nation of the potential saleable tonnes and product
specifications for reserve purposes.
The theoretical yield variations at the Makhado
project are based on a 1,4 relative density (RD) wash
product. An initial assessment of the resource indi-
cates a hard coking coal yield of 18,8 % at 10 % ash
(inclusive of an additional 4,07 % recovery from fines)
and a thermal coal yield of 25,8 % at 30 % ash. There-
fore, the overall yield as defined by the total product
tonnes as a percentage of the ROM tonnes is 44,6 %.
Coal quality and marketing
As part of the DFS, CoAL completed a comprehensive
independent coal quality testing and analysis pro-
gramme which finalised coal quality specifications
and determined the coal yield. The various metal-
lurgical testwork programmes, which included both
washing and coking tests, were carried out at various
facilities and reviewed by both Venmyn Deloitte and
A&B Mylec.
The testwork proved that Makhado is capable of
producing a hard coking coal product with a 10 %
ash content for the export and domestic markets, as
well as a thermal coal product also for the domestic
or export market. According to A&B Mylec, potential
exists to increase the yield for the Makhado project
and this will be investigated in due course.
In addition, CoAL contracted the independent ser-
vices of Wood Mackenzie (Australia) to assess the
global coal outlook in relation to the Makhado coal
quality parameters.
Wood Mackenzie assessed the typical quality of the
coking coal at Makhado to be hard coking coal with a
relatively high CSR value above 60 – which therefore
has an ability to carry weaker coals in the coke blend.
The assessment was based on specifications relative
to other international hard coking coal producers and
on the global outlook for hard coking coal.
The Makhado hard coking coal specification also
indicates that it would be a good primary coal in a
hard coking coal blend, as demonstrated in blending
tests at ArcelorMittal South Africa’s Vanderbijlpark
Steel Plant. In addition, the Makhado coal has higher
levels of organic sulphur than some competing Aus-
tralian products, which have inorganic sulphur that
tends to lower steel quality and contributes to emis-
sions. As such, this coal should be classified as a high
volatile matter hard coking coal and is expected to
be priced at benchmark parity. The geographical loca-
tion of Makhado is an important factor in determin-
ing its likely markets.
Makhado’s thermal coal is significantly different
from the South African coalfields currently produc-
ing thermal product for both export and domestic
use, mainly because of its high calorific value. There-
fore extensive combustion tests were carried out to
ascertain its usability primarily in Eskom’s power sta-
tions that are able to receive coal on rail. The tests
confirmed that it is well within the specifications
for Eskom’s power stations and, for export, the grade
conforms to coal specifications required by importers
and would be a suitable blend product for the power
and cement industry in Asia.
CoAL envisages product to be sold domestically
and exported through CoAL’s allocation at Terminal
de Carvão da Matola (TCM), Maputo in Mozambique.
Makhado coal will have a freight advantage in serv-
ing the South African domestic market compared to
imported coking coals.
Proposed timeline for the Makhado project.
