Mining investment company Menar has entered into a development agreement with Coalvent and African Onca to develop the Riversdale Anthracite Colliery (RAC) project, near Vryheid, in KwaZulu-Natal.
This follows after Menar’s successful turnaround of the Zululand Anthracite Colliery (ZAC).
Like ZAC, which is situated in the north of KwaZulu-Natal, the RAC project will produce low-sulphur, medium-quality anthracite coal.
The coal deposits are estimated to be greater than nine-million tonnes.
Coalvent and African Onca previously acquired Rio Tinto’s shares in RAC.
“RAC will, in many ways, complement ZAC. Not only are we bringing our experience into the extraction of anthracite, but we are also bringing market exposure.
“RAC’s production will be complementary for ZAC’s customers, as well as new customers that we [hope] to supply,” commented Menar COO Bradley Hammond on Monday.
Menar had acquired ZAC from Rio Tinto in 2016 and turned it into a thriving operation whose production is sought-after in a competitive international market. ZAC is the sole producer of prime anthracite in South Africa.