JOHANNESBURG (miningweekly.com) – The legislative changes around emission of greenhouse gases is becoming more onerous as the South African government implements the Paris Agreement, diversified black-owned resources group Exxaro said on Monday, when the coal-mining major announced that “good progress” had been made in finalising its replacement black economic empowerment (BEE) transaction.

In reiterating Earthlife Africa Johannesburg’s successful legal proceedings to set aside the environmental authorisation for the company’s proposed 600 MW Thabametsi coal-fired power station near Lephalale, Exxaro said it would continue monitoring the progress of this legal procedure at a time when the Environmental Affairs Minister would be considering a climate impact assessment report in making the revised environmental authorisation determination for the project.

At the same time, ongoing good demand in the domestic market, stable seaborne demand in the international market and the implementation of new technology were promising improved operational results for the coal business in the second half of this year.

Thermal coal production from commercial mines is poised to rise by 9%, metallurgical coal production by 15%, with domestic non-Eskom thermal coal sales soaring by 37% on higher domestic demand.

Coal buy-ins are expected to decrease by 91% due to the availability of sufficient own coal to fulfil contracts, with sales to Eskom expected to increase by 3%.

However, thermal coal production and sales from Eskom-tied mines is set to fall by 15% on production challenges at the Matla mine, where an Exxaro employee tragically lost his life on March 1.

Large capital projects at Matla remain unfunded by Eskom, with Mine 1 on care and maintenance and Exxaro is continuing to engage with Eskom to provide the required capital funding.

At the Arnot mine, Exxaro and Eskom are resolving contractual arrangements through an arbitration process.

The Johannesburg Stock Exchange-listed company, headed by CEO Mxolisi Mgojo, expects its capital expenditure at its Grootegeluk and Belfast coal mines to increase by 21%.

At the Belfast project, a rezoning appeal process by the Nkangala district municipality is likely to delay the start of the construction phase to September.

The company’s two wind-farm projects, Amakhala Emoyeni and Tsitsikamma Community Wind Farm are running at planned capacity.

On its replacement BEE transaction, the black-owned group with business interests that extend to the US and Australia has agreed the key terms relating to reinvestment by shareholders that include the State-owned Industrial Development Corporation.

The company has also been verified as a Level 6 BEE contributor.