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A leading global supplier of coal for steel-making and electricity generation

Thermal coal

Underlying Operating Profit

Annual revenue: R59.4bn ($5.64bn)

Coal SA’s contribution to the Group's operating profit in 2013: $541m (R5.2bn)

Number of employees: 8,999 employees and 9,097 contractors

Women in mining: 19% female workforce and 13% women in core mining roles

55% of management positions are held by historically disadvantaged South Africans.

Corporate social investment spend in 2013: We spent 3.3% of our net profit after tax (NPAT) which equates to R162.2m. This brings our total expenditure on community development over the past five years to more than R400m.

Enterprise development spend in 2013: We spent R6.5bn with HDSA businesses excluding goods and services from state owned entities. This represents a 14% increase on the R5.6bn spent in 2012.

Our Business

The amalgamation of Anglo American’s metallurgical and thermal coal operations has led to the emergence of a truly global coal business with assets in South Africa, Australia, Canada and Colombia.

This business, under the leadership of Seamus French, became effective on 1 January 2014, and is supported by regional management teams in South Africa, under the leadership of Themba Mkhwanazi. We also have operations in Australia, Canada and Colombia.

Our global executive leadership team has set out its near-term business integration plan. Primary focus areas include:

  • The elimination of fatalities.
  • The management of relationships with stakeholders to enhance business value while meeting economic and social needs.
  • The running of operations processes in a planned way to improve safety and environmental performance while delivering a 30% productivity increase and achieving a real cost reduction.
  • The achievement of a sustainable 20% return on capital employed.

Our coal business in South Africa produces thermal coal largely for domestic use with a portion being supplied to the export market. Goedehoop, Greenside, Kleinkopje, Landau, Mafube and Zibulo collectively supply just over 17Mt of coal for the export market while Kriel, New Denmark and New Vaal solely supplies Eskom. Isibonelo produces an annual five million tonnes for Sasol Synthetic Fuels under a long term contract. Together, these operations produced 56.6Mt of coal in 2013, with 59% used for local power generation.

Where We Mine

Coal South Africa wholly owns and operates seven mines – Goedehoop, Greenside, Kleinkopje, Landau, New Denmark, Isibonelo and New Vaal and has a 73% shareholding in Anglo American Inyosi Coal (AAIC), the broad-based black economic empowerment company we created in June 2010.

AAIC took full ownership of our Kriel operation, the Zibulo multi-product mine and the greenfield projects of New Largo, Elders and Heidelberg. Included in the AAIC business is the double-staged Phola coal washing plant, a 50:50 joint venture with BHP Billiton Energy Coal South Africa (BECSA).

We also have 50% interest in Mafube, a joint venture with South African diversified resources group Exxaro.

Our operations route all export coal through the Richards Bay Coal Terminal (RBCT) in which we hold a 24.2% stake.

Our Difference

Like all our business units, we aim to leave a lasting positive impact in all the communities in the areas where we operate, creating shared value and a sustainable future for all South Africans.

We are also actively involved in finding cleaner coal solutions for the world’s energy needs by developing new technologies in areas such as clean coal, carbon capture and storage, and reduction of methane emissions.

Leadership Team

Themba Mkhwanazi

CEO, Coal South Africa

Globally Seamus French is the CEO of Anglo American’s Coal business. The coal business in South Africa is led by Themba Mkhwanazi as the CEO of Coal South Africa since May 2014. Prior to his appointment he was Rio Tinto’s regional general manager for America, responsible for delivering technical and operational improvements across Rio Tinto’s businesses in the region.

Themba has held a number of senior roles within the resources industry, including COO of Richards Bay Minerals, during which he was responsible for mining, smelting and processing operations. Before that, he was a managing director with the Huntsman Corporation in South Africa.

His full list of positions have included process engineer at Sasol; shift plant manager, business improvement senior coach, plant manager, area manager and MD of Huntsman Tioxide; COO Richards Bay Minerals; and GM expansion support and regional GM technology and innovation at Rio Tinto.

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Globally Seamus French is the CEO of Anglo American’s Coal business. The coal business in South Africa is led by Themba Mkhwanazi as the CEO of Coal South Africa since May 2014. Prior to his appointment he was Rio Tinto’s regional general manager for America, responsible for delivering technical and operational improvements across Rio Tinto’s businesses in the region.

Themba has held a number of senior roles within the resources industry, including COO of Richards Bay Minerals, during which he was responsible for mining, smelting and processing operations. Before that, he was a managing director with the Huntsman Corporation in South Africa.

His full list of positions have included process engineer at Sasol; shift plant manager, business improvement senior coach, plant manager, area manager and MD of Huntsman Tioxide; COO Richards Bay Minerals; and GM expansion support and regional GM technology and innovation at Rio Tinto.

Uses of Thermal Coal

Coal provides heat to make electricity and steel. It’s still the great driver of the industrial world, fueling the power stations and steelworks of emerging and fast-growing economies.

Thermal coal is the heat source for around 40% of all electricity generated globally today.

In South Africa thermal coal is what the country uses most to generate its electricity. In fact, around 77% of South Africa’s primary energy needs are provided by coal. This is unlikely to change in the decades to come as there is a distinct lack of alternatives to coal as a viable source of energy.

India and China’s reliance on imported thermal coal is expected to drive continued growing demand in the long term.

Contacts
Head Office

55 Main Street,
Johannesburg
2001

For sales enquiries, please email: SalesandMarketing.Enquiries@angloamerican.com

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Real Mining. Real People. Real Difference.