Operations
TerraCom, via its 100% ownership of Universal Coal Ltd (Universal), holds an interest in a portfolio of producing, development and exploration assets located across South Africa’s major coalfields.
South African Operations
The South African operations provide domestic quality coal to Eskom (South Africa’s government owned power utility) and also provide export coal to customers via the Richards Bay and Maputo coal terminals.
The South African Business Unit comprises three operating coal mines – North Block Complex, New Clydesdale Colliery and Ubuntu Colliery.
A Solid Contributor
New Clydesdale Colliery (NCC)
NCC is located in the Kriel district, within the Mpumalanga province in South Africa located approximately 149km from Johannesburg and consists of the Roodekop and Diepspruit West projects.
NCC is a multi-product open cast and underground mine with the ability to produce domestic and export quality product. NCC has a 1.6 Mt per annum off-take agreement with Eskom, South Africa’s largest power generator, until 2024 and an export offtake for 650Kt per annum with a global trader.
North Block Complex (NBC)
NBC is located in Belfast in the Mpumalanga province, South Africa, approximately 200km North-east of Johannesburg. Open cast mining is taking place in the Paardeplaats section that was developed in FY2020.
NBC is a multi-product open cast operation that has solidified itself as a reliable supplier of high-quality export thermal coal for the export market and domestic coal for ESKOM, South Africa’s power generator. The multiple established export path to market for NBC provides the platform for further growth opportunities for the Company.
Ubuntu Colliery (Ubuntu)
Ubuntu is located in the Emalahleni area, within the Mpumalanga province in South Africa.
The energy content under the Coal Supply Agreement (CSA) between Ubuntu and Eskom concluded end February 2023. The CSA has not been renewed and the colliery is now on care and maintenance.
Given the level of production and sales, the shifting of Ubuntu into care and maintenance will not have a material impact on the ongoing financial performance of the South African Business Unit. Alternative domestic supply opportunities are being considered.
