Boikarabelo Coal Project development progresses despite earthworks contractor’s liquidation

by Ina King (Potgieter)

The Boikarabelo Project (Ledjadja Coal joint venture), in the Waterberg Region, Limpopo Province, experienced a setback when its main onsite earthworks contractor, Protech Kuthele, was placed into liquidation. Consequently, earthwork activity for the rail link, site infrastructure and roads came to a halt, as did construction of three bridges under and over the rail line as these were being built by one of Protech Kuthele’s sub-contractors. It is estimated this setback will delay the conclusion of the project by three to six months, with first coal production likely to take place for the first half of 2016.

Senior General Manager for the Boikarabelo Coal Project, Andy McLeod, said that surveying of current earthworks was underway. The mine’s management is in the process of conducting detailed surveys on the 40-kilometre rail route and 38-kilometre road infrastructure including all the earthworks that have been carried out by Protech Kuthele, so it can establish an accurate scope for retendering. “As the initial tender process attracted a lot of attention and proposals, the mine does not expect any difficulty in appointing a new onsite earthworks contractor, which will take place as soon as possible.”

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The exploration permit for the Boikarabelo Project consists of seven properties adjoining to the west and south of the Waterberg 1 Project. Mining infrastructure synergies exist through incorporation of the Ledjadja Coal and Waterberg Coal Areas.

“While developments regarding Protech Kuthele’s liquidation is disappointing,” says MD of Resource Generation Paul Jury, “other work at the mine continues as usual.” Work on several other projects at Boikarabelo Coal Mine remains uninterrupted. These include:

• Completion of the construction camp with power and utility services for 1 320 personnel
• Installation of accommodation units for 400 personnel
• Completion of the first three (of seven) rail link bridges
• Completion of main water supply infrastructure
• Completion of the construction office complex

“Resource Generation and the Boikarabelo Coal Mine are in robust financial health,” Jury commented, “and, together with the local community and our South African partners we fully intend to develop Boikarabelo into one of South Africa's largest coal mines.”

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