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South Africa

Vele Mine

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Overview

Mine TypeOpen Pit
StatusTemporary Suspension
Commodities
  • Coal (metallurgical)
  • Coal (semi-soft coking)
  • Coal (thermal)
Mining Method
  • Truck & Shovel / Loader
Production Start... Lock
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SnapshotThe Vele Coal Resource comprises both steelmaking semi-soft coking coal (SSCC) and export quality thermal coal.

The Vele colliery was placed on care and maintenance from August 2013. The Vele colliery entered into a mining and processing outsourcing agreement with HOS in FY2023 and the Vele colliery was recommissioned in December 2022.

HOS experienced operational challenges in attaining the targeted monthly saleable coal production while unit costs were adversely impacted by the lack of access to rail capacity to transport Vele’s coal to port. The challenges experienced by HOS were exacerbated by the decline in the API4 export thermal coal price during CY2023. As a result, HOS exercised the hardship clause in the outsource agreement during December 2023 and commenced downscaling operations at Vele. The downscaling was completed during January 2024.

As of 30 September, 2024, operations at Vele remain suspended.

The Vele operations are expected to resume in H2 FY2025.

Owners

SourceSource
CompanyInterestOwnership
MC Mining Ltd. 100 % Indirect
MC Mining Ltd. owns 100% of Vele Colliery.

Contractors

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Deposit type

  • Sedimentary

Summary:

The coal deposition of the Vele Colliery occurred within and intra-continental basin bounded by extensional faulting. Major faults have been interpreted, through field observations and geophysics, for the area. The faults divide the deposit in blocks with varying seam depths.

A serious of dolerite dykes trend predominantly east west across the project Colliery area, the largest is estimated to be more than 15m thick. These dykes were emplaced during the extension tectonics that formed the intra continental basin. The dykes did not have significant displacement associated with their emplacement but have resulted in minor de-volatilisation of coal in the immediate contact.

The Top, Middle and Bottom seams were all intersected through drilling and mining activities within the Vele Colliery area. Top and Bottom seams can further be differentiated into a Top Lower, Top Middle, Top Upper, Bottom Lower and Bottom Upper. The Top Middle and Top Upper are not considered economic.

Individual sub-seams can be correlated over the entire area. Correlation is assisted by a distinctly bioturbated marker between the Bottom and Middle seams. The Bottom seam lies directly over the glacial Dwyka-aged sediments or granite-gneiss basement. The coal seams generally dip with no more than 2° north, but can increase to 10° in the vicinity of faults. A series of dolerite dykes occurs in the area and does not appear to have caused any displacement but have devolatilise the coal bordering them.

The coal deposition of the Vele Colliery occurred within and intra-continental basin bounded by extensional faulting. Major faults have been interpreted, through field observations and geophysics, for the area. The faults divide the deposit in blocks with varying seam depths.

A serious of dolerite dykes trend predominantly east west across the project Colliery area, the largest is estimated to be more than 15m thick. These dykes were emplaced during the extension tectonics that formed the intra continental basin. The dykes did not have significant displacement associated but have resulted in minor de-volatilisation of coal in the immediate contact.

The three coal horizons are interbedded coal and mudstone units with varying coal quantities and qualities. The coal zones can be subdivided into four coal sections or composite seams, namely: Inconsistently formed Top Seam, which is 0 – 7.66m thick and contains 55% to 65% coal The Middle Seam, which is 0 – 2.19m thick and contains 20% to 45% coal The Bottom Upper Seam, which is 0 – 5.48m thick and contains 65% to 80% coal The Bottom Lower Seam, which is 0 – 7.87m thick and contains 65% to 80% coal

The deposits outcrops in the east and the southern part of the deposit. The coal seams have been removed during post Karoo erosion towards the south. The seams occur in blocks with different seam floor and roof elevations due to the prevalent faulting within the area. The faulting divided the deposit into opencast minable coal and underground exploitable coal sections. The deposit covers an area of 4 502.7ha and the floor of the Bottom Lower seam varies between 340m amsl and 480m amsl.

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 production activities were resumed in December 2022 after the care and maintenance period. The downscaling was completed during January 2024.
CommodityUnits20242023
Coal (thermal) t  ....  Subscribe  ....  Subscribe
All production numbers are expressed as clean coal.

Production Costs

Commodity production costs have not been reported.

Heavy Mobile Equipment

Fleet data has not been reported.

Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Dec 9, 2024

Total WorkforceYear
...... Subscription required 2023

Aerial view:

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