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South Africa

Arnot Mine

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Overview

Mine TypeUnderground
StatusActive
Commodities
  • Coal (thermal)
Mining Method
  • Bord-and-pillar
  • Continuous
Production Start... Lock
Mine Life... Lock
SnapshotArnot Mine commenced production activities in February 2022.

Salungano Group is under suspension from trading the shares on the JSE Limited, which came into effect on 21 August 2023, for failing to publish its audited financial results for the year ended 31 March 2023.

The delay in the finalisation and publication of the FY2023 financial results relates to the finalisation of the Salungano’s refinancing agreements. As on 29 February 2024, the refinancing process has not yet been concluded.

The Board now anticipates that the FY2023 financial results will be published on or before 15 April 2024.

Therefore, public records for 2023 Arnot mine production data are not available.

Owners

SourceSource
CompanyInterestOwnership
Salungano Group Ltd. 45 % Indirect
Innovators Resources (Pty) Ltd (“IR”) 45 % Indirect
Ownership Tree
Salungano Group Limited, through Wescoal Mining Proprietary Limited, holds a 45% shareholding interest in Arnot OpCo Proprietary Limited.

Arnot HoldCo currently has an interest of 100% in Arnot OpCo. Post the incorporation of the Arnot employee and community trust this shareholding will reduce to 90% which will make Salungano’s effective shareholding in Arnot OpCo 45%. This has been

used for the purpose of the resources and reserves summary.

Deposit type

  • Sedimentary

Summary:

No 1 Seam The S1 is consistently developed in the western half of the Arnot Project area, while in the eastern portion it only occurs as isolated patches. It is intersected at an average depth of more than 50 m in the underground extents, rendering it not feasible for exploitation in these areas. It does occur at shallower depths of at least 23 m in the opencast areas and remains a good prospect in these resource areas. It is, however, patchily distributed. Where present it is generally 1.2 m thick and consists of a hard, good quality mixed bright and dull banded coal, an average in situ Calorific Value (“CV”) of 25 MJ/kg on an air-dried basis (“adb”). The inter-seam parting between the S1 and S2 consists of a grey micaceous mudstone unit that is usually between 0.7 m to 1.5 m in thickness, which increases up to 5 m at the fringes of the S1 outcrop area. No 2 Seam The S2 is site-specifically subdivided into the Seam 2 Lower (“S2L”), Seam 2 Upper (“S2U”) and Seam 2A (“S2A”) marked by two intra-seam partings, namely parting P2 and P3, respectively. The S2L constitutes the majority of the coal resources in the Arnot area and consists of hard, dull to lustrous coal with several bright coal bands and occasional stone partings. It has a CV of between 22.83 - 23.80 MJ/kg in the underground resource area and between 24.06-24.46 MJ/kg in the opencast resource area. The S2L is continuous across the Arnot Project. The depth to the top of the S2L depends largely on local surface topography and reaches a maximum depth of 80 m along the eastern boundary of the Project area, pinching and thinning out in the eastern parts of the mining section due to local, pre-Karoo basement palaeo-highs. No 4 Seam The S4 occurs erratically across the lease area with an average thickness of 0.7 m. The seam is often split by internal clastic partings into Seam 4 Lower (“S4L”) and Seam 4 Upper (“S4U”). The No. 4 Seam is overlain by interlaminated units of siltstone and shale with the S5 sporadically developed in areas. Neither the S4 nor S5 are included in the coal resource estimates. Structure and Intrusions A well-developed dolerite sill is present some 15m–20m above the S2L in the topographically elevated areas in the south-eastern portion of the Arnot Project area. This sill is between 5m–40m thick, with an average of approximately 11 m, and has resulted in devolatilisation and minor resource loss where the volatile matter dropped below 18%. Feeder dykes are expected to occur in the vicinity of the sill. A number of dolerite dykes are also known to have intruded the Karoo Supergroup succession in the area, with six dykes having been intersected in the underground workings to date. The dykes often lack magnetic signature and are not responsive to geophysical methods of detection. Faults with displacement in excess of 2.5 m are rare and to date only six have been encountered in the underground mine (Sambo and van der Merwe, 2015). A high density of compactional structures (i.e. slips and faults), however, occur in zones adjacent to pre-Karoo palaeo-highs. Similar features are observed on the flanks of relatively large floor rolls, scour and dome structures. The aforementioned geological structures have an adverse effect on underground coal-mine roof and strata-stability as they manifest into roof and side falls, caving of the roof and, more rarely, in subsidence of the ground surface.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

Milling equipment has not been reported.

Processing

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Production

The Arnot Colliery was place on care and maintenance at the end of 2015.
CommodityUnits2015
All production numbers are expressed as clean coal.

Production Costs

Commodity production costs have not been reported.

Financials

Units202220212020
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Heavy Mobile Equipment

Fleet data has not been reported.

Personnel

Mine Management

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Aerial view:

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