AN ASSESSMENT OF RESERVES, PRODUCTION AND EXPORT POSSIBILITIES OF COAL IN AFRICAN COUNTRIES
BY
BRENT ROBERT SPALDING
SUBMITTED IN FULFILMENT OF THE REQUIREMENTS
OF THE DEGREE
MAGOSTER PHILOSOPHIAE
IN
ENERGY STUDIES
IN THE
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES
AT THE
RAND AFRIKAANS UNIVERSITY
STUDY LEADER: PROF. D.J. KOTZE
OCTOBER 1999 AN ASSESS ENT OF RESERVES, PRODUCTION AND EXPORT POSSIBILITIES OF COAL IN F ICAN COUNTRIES
B.R. SPALDING ABSTRACT:
Coal forms an important role in the energy balance of the world economy. Despite having lost market share to gas in recent years, due to its vast reserves coal will continue to play a massive role in future energy markets.
Up to now numerous studies have been completed on the major coal producing countries including South Africa, Australia and the United States. However no in-depth study of the smaller coal producing countries in Africa has been done.
This dissertation would first identify the coal producing countries in Africa, estimate the possible reserves of each country and with the use of maps show the location of these reserves.
Thereafter this dissertation will evaluate the infrastructure of the different coal producing countries to determine the possible coal export opportunities that exist in these countries. Factors influencing these export opportunities will also be investigated.
The study will include South Africa but it will in no way be the focal point.
A study of this nature will be extremely informative giving conclusions to the potential coal reserves that exist throughout Africa and will identify the possible export potential of this region. CONTENTS: PAGE:
INTRODUCTION 1 AFRICA COAL RESERVES BY COAL TYPE 3
2.1. ANTHRACITE DEPOSITS IN AFRICA 3 2.2. BITUMINOUS COAL DEPOSITS IN AFRICA 3 2.3. LIGNITE 5
COUNTRY ANALYSES 7
3.1. BOTSWANA 7
3.1.1. EXPLORATION HISTORY 7 3.1.2. COALFIELDS 8 3.1.3. TOTAL RESERVES 22 3.1.4. PRODUCTION TRENDS AND PROSPECTS 22 3.1.5. COAL EXPORTS 24 3.1.6. CONTRIBUTION OF COAL TO THE ECONOMIC AND 25 REGIONAL DEVELOPMENT 3.2. EGYPT 29
3.2.1. COAL RESOURCES 29 3.2.2. COAL PRODUCTION AND DEMAND PROSPECTS 30 3.2.3. COAL-FIRED POWER GENERATION 31 3.2.4. CONTRIBUTION OF COAL TO THE ECONOMIC AND 31 REGIONAL DEVELOPMENT
3.3. MALAWI 34
3.3.1. COAL RESOURCES AND QUALITIES 34 3.3.2. STRATIGRAPHY OF THE KAROO SYSTEM IN MALAWI 34 3.3.3. MALAWI COAL RESOURCES AND CHARACTERISTICS 35 3.3.4. COAL PRODUCTION 37 3.3.5. PRESENT CONSUMPTION 38 3.3.6. ELECTRIC POWER GENERATION 39 3.3.7. EXPORT POTENTIAL OF MALAWI COAL 40 3.3.8. COAL DEMAND AND FUTURE GROWTH 40 3.3.9. CONTRIBUTION OF COAL TO THE ECONOMIC AND 40 REGIONAL DEVELOPMENT
3.5. MOROCCO
3.4.1. COAL RESOURCES AND QUALITIES 43 3.4.2. PRODUCTION TRENDS 44 3.4.3. FUTURE COAL PROSPECTS 45 3.4.4. COAL-FIRED POWER GENERATION 45 3.4.5. CONTRIBUTION OF COAL TO THE ECONOMIC AND 46 REGIONAL DEVELOPMENT
3.5. MOZAMBIQUE 49
3.5.1. COAL RESOURCES AND QUALITIES 49 3.5.2. MOATIZE PROJECT 50 3.5.3. COAL PRODUCTION TRENDS AND PROSPECTS 53 3.5.4. COAL QUALITIES 54 3.5.5. CONTRIBUTION OF COAL TO THE ECONOMIC AND 55 REGIONAL DEVELOPMENT 3.6. NIGER 59
3.6.1. COAL RESOURCES AND QUALITIES 59 3.6.2. COAL PRODUCTION AND DEMAND PROSPECTS 59 3.6.3. LONG-TERM PROSPECTS 59
3.7. NIGERIA 61
3.7.1. COAL RESOURCES 61 3.7.2. ENERGY SOURCES AND PROSPECTS IN NIGERIA 61 3.7.3. COAL RESOURCES AND RESERVES 62 3.7.4. COALFIELDS 62 3.7.5. COAL QUALITIES 64 3.7.6. COAL PRODUCTION AND DEMAND TRENDS 64 3.7.7. COAL EXPORTS FROM NIGERIA 66 3.7.8. CONTRIBUTION OF COAL TO THE ECONOMIC AND 66 REGIONAL DEVELOPMENT
3.8. SWAZILAND 70
3.8.1. RESERVES 70 3.8.2. STRUCTURAL GEOLOGY 71 3.8.3. COALFIELD GEOLOGY 71 3.8.4. MINEABLE SEAMS 72 3.8.5. MINEABLE AREAS 72 3.8.6. SWAZILAND WASHED COAL QUALITIES 74 3.8.7. COAL PRODUCTION 75 3.8.8. PROJECTS INVESTIGATED 78 3.8.9. MARKETS 80 3.8.10. LONG-TERM PROSPECTS 81 3.8.11. CONTRIBUTION OF COAL TO THE ECONOMIC AND 81 REGIONAL DEVELOPMENT
3.9. TANZANIA 86
3.9.1. COAL RESOURCES AND QUALITIES 86 3.9.2. COAL PRODUCTION TRENDS AND PROSPECTS 87 3.9.3. CONTRIBUTION OF COAL TO THE ECONOMIC AND 88 REGIONAL DEVELOPMENT
3.10. ZAIRE (DEMOCRATIC REPUBLIC OF CONGO) 92
3.10.1. COAL RESOURCES AND QUALITIES 92 3.10.2. COAL PRODUCTION 92 3.10.3. CONTRIBUTION OF COAL TO THE ECONOMIC AND 93 REGIONAL DEVELOPMENT
3.11. ZAMBIA 97
3.11.1. COAL RESOURCES AND QUALITIES 97 3.11.2. COAL PRODUCTION TRENDS 97 3.11.3. COAL PRODUCTION PROSPECTS 98 3.11.4. CONTRIBUTION OF COAL TO THE ECONOMIC AND 99 REGIONAL DEVELOPMENT 3.12. ZIMBABWE 103
3.12.1. RESERVES 103 3.12.2. PRODUCTION TRENDS 108 3.12.3. FUTURE COAL PROSPECTS 109 3.12.4. CONTRIBUTION OF COAL TO THE ECONOMIC AND 110 REGIONAL DEVELOPMENT
3.13. SOUTH AFRICA 114
3.13.1 RESERVES 114 3.13.2. MINERAL RIGHTS AND MINING POLICY 115 3.13.3. COALFIELDS 116 3.13.4. COAL PRODUCTION 129 3.13.5. LOCAL CONSUMPTION 129 3.13.6. EXPORTS 133 3.13.7. CONTRIBUTION OF COAL TO THE ECONOMIC AND 137 REGIONAL DEVELOPMENT
4. ELECTRICITY EXPORTS 141
4.1. AFRICAN COAL EXPORTS 141 4.2. SOUTHERN AFRICAN ELECTRICITY GRID 141 4.3. ESKOM'S INVOLVEMENT IN THE AFRICAN ELECTRICITY GRID 143 4.4 THE AFRICAN ELECTRICITY GRID 144 4.4.1. OVERCOMING EXPORTING COAL LIMITATIONS 144 4.5. ELECTRICITY GRIDS ACROSS THE GLOBE 145 4.5.1. OVERCOMING EXPORTING COAL LIMITATIONS 145
5. CONCLUSION 147 TABLES: PAGE:
1.1. COAL RESERVES AT THE END OF 1998 1 1.2. AFRICAN COAL PRODUCTION & CONSUMPTION 1 3.1. IN-SITU COAL RESOURCES SOUTH-WEST OF KGASWE LEASE AREA 12 3.2. SUMMARY OF IN SITU COAL RESOURCES BETWEEN THE KGASWE LEASE 12 AREA AND THE MORUPULE COLLIERY 3.3. SUMMARY OF IN-SITU COAL RESOURCES MMAMABULA CENTRAL BLOCK 14 3.4. IN-SITU COAL RESOURCES "SOUTH BLOCK-E", LETLHAKENG AREA 16 3.5. RAW ANALYSES OF COALS IN THE SERULE AREA 18 3.6. SUMMARY OF IN SITU COAL RESOURCES IN BOTSWANA 22 3.7. COAL DEMAND / PRODUCTION AND TRADE (BOTSWANA) 27 3.8. EGYPT - COAL QUALITIES 30 3.9. COAL DEMAND / PRODUCTION AND TRADE (EGYPT) 32 3.10. COAL RESERVES AND RESOURCES OF MALAWI (IN MILLION TONS) 35 3.11. CHARACTERISTICS OF THE MAIN COAL DEPOSITS IN MALAWI 37 3.12. MAJOR CONSUMERS OF COAL IN MALAWI 39 3.13. MOROCCO - COAL QUALITIES OF THE JERADA COALFIELD 43 3.14. COAL DEMAND / PRODUCTION AND TRADE (MOROCCO) 47 3.15. MOATIZE COALFIELD - COAL SEAM THICKNESS 50 3.16. MOATIZE PROJECT IN-SITU RESERVE CALCULATION 51 3.17. COKING AND STEAM COAL QUALITIES - CHIPANGA SEAM 55 3.18. NIGERIAN COAL RESERVES IN MILLION TONS 63 3.19. NIGERIAN COAL QUALITIES 64 3.20. COAL DEMAND / PRODUCTION AND TRADE (NIGERIA) 68 3.21. SWAZILAND COAL RESOURCES 70 3.22. MPAKA COAL QUALITIES 73 3.23. MTINDEKWA COAL QUALITIES 73 3.24. MALOMA COAL QUALITIES 73 3.25. MZIMPOFU RIVER COAL QUALITIES 74 3.26. MHLUME COAL QUALITIES 74 3.27. WASHED COAL QUALITIES 75 3.28. MHLUME COLLIERY - COAL QUALITIES 79 3.29. SWAZILAND COLLIERY COAL QUALITIES 80 3.30. COAL DEMAND / PRODUCTION AND TRADE (SWAZILAND) 84 3.31. COAL DEMAND / PRODUCTION AND TRADE (TANZANIA) 90 3.32. ZAIRE (DRC) - COAL QUALITIES 92 3.33. COAL DEMAND / PRODUCTION AND TRADE (ZAIRE) 95 3.34. COAL DEMAND / PRODUCTION AND TRADE (ZAMBIA) 101 3.35. WANKIE COALFIELD - AVERAGE RUN-OF-MINE COAL QUALITY 105 3.36. INFERRED RESOURCES FOR VARIOUS ZIMBABWE COALFIELDS 108 3.37. COAL DEMAND / PRODUCTION AND TRADE (ZIMBABWE) 112 3.38. SOUTH AFRICAN ESTIMATED RESERVES 114 3.39. ANNUAL SALEABLE PRODUCTION, LOCAL CONSUMPTION AND EXPORTS 131 3.40. LOCAL SALES FOR THE YEAR 1998 132 3.41. SEABORNE STEAM COAL TRADE 133 3.42. SOUTH AFRICAN COAL EXPORTS BY COUNTRY - 1989 TO 1998 134 3.43. SEABORNE STEAM COAL SUPPLY 135 3.44. SOUTH AFRICA PROJECTED EXPORTS OF BITUMINOUS COAL TO 2005 136 3.45. TOTAL PORT CAPACITY BY 2005 137 MAPS: PAGE:
AFRICA: BITUMINOUS COAL DEPOSITS 4 BOTSWANA: BITUMINOUS COAL DEPOSITS 28 EGYPT: BITUMINOUS COAL DEPOSITS 33 4 MALAWI: BITUMINOUS COAL DEPOSITS 42 MOROCCO: BITUMINOUS COAL DEPOSITS 48 MOZAMBIQUE: BITUMINOUS COAL DEPOSITS 58 NIGERIA: BITUMINOUS COAL DEPOSITS 69 SWAZILAND: BITUMINOUS COAL DEPOSITS 85 TANZANIA: BITUMINOUS COAL DEPOSITS 91 ZAIRE: BITUMINOUS COAL DEPOSITS 96 ZAMBIA: BITUMINOUS COAL DEPOSITS 102 ZIMBABWE: BITUMINOUS COAL DEPOSITS 113 SOUTH AFRICA: BITUMINOUS COAL DEPOSITS 140 SOUTHERN AFRICAN ELECTRICITY GRID 142
APPENDICES:
AFRICA - COAL RESOURCES/RESERVE SUMMARY AFRICA - COAL LOCATION AND INFRASTRUCTURE SUMMARY AFRICA - COAL QUALITY SUMMARY AFRICA - MARKETABLE RESERVES/TONNAGE SUMMARY ABBREVIATIONS AND UNITS
BP British Petroleum
CDM Charbonnages du Maroc
CV Calorific Value
DRC Democratic Republic of Congo dwt Dead Weight Ton
EDM Electricidade de Mocambique
EISCO Egyptian Iron and Steel Company
EU European Union
FC Fixed Carbon
FCCC Framework Convention on Climate Change
FOB Free on Board
GAD . Gross Air Dried
GCV Gross Clorific Value
GDP Gross Domestic Product
GJ/ ton Gigajoules Per Ton
!EA International Energy Agency kcal Kilocalories kcal/kg Kilocalories/Kilogram kg Kilogram kilotons 1000 Tons km Kilometer kV Kilovolts m Metre
MJ/kg Megajoules per Kilogram mtoe Million Tons Oil Equivalent mtpa Million Tons Per Annum
MW Mega Watt
NCC Nigerian Coal Corporation
S.G. Specific Gravity
SADC Southern African Development Community
SEB Swaziland Electricity Board tpa Ton Per Annum
UN United Nations
US$ United States Dollar
VM Volatile Matter
ZESCO Zambian Electricity Supply Corporation 1. INTRODUCTION
TABLE 1.1. COAL RESERVES AT THE END OF 1998 MILLION TONS
Country Anthracite Sub-Bituminous Total Share of total & Bituminous & Lignite Coal World Reserves
South Africa 55333 - 55333 5.6% Zimbabwe 734 - 734 0.1% Other Africa 5095 250 5345 0.5%
Total Africa 61162 250 61412 6.2%
(BP Amoco, 1999)
When African coal reserves are compared to world coal reserves, other then South Africa, they can be considered as insignificant. However with significant changes occurring in Africa over the past decade these reserves will make an impact domestically as well as on neighbouring countries. Later in this dissertation the international impact will also be considered.
TABLE 1.2. AFRICAN COAL MILLION TONS OIL EQUIVALENT
Country Change 1998 1998 share 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 over 1997 of total
PRODUCTION South Africa 96.1 93.4 92.6 94.5 92.4 96.6 103.8 109.3 109.4 116.6 118.3 1.4% 5.3% Zimbabwe 3.2 3.2 3.5 3.5 3.5 3.3 3.4 3.5 3.3 3.3 3.2 -4.7% 0.1% Other Africa 1.5 1.4 1.4 1.5 1.5 1.4 1.5 1.5 1.3 1.5 1.5 0.4% 0.1%
Total Africa 100.8 98.0 97.5 99.5 97.4 101.3 108.7 114.3 114.0 121.4 123.0 1.3% 5.5%
CONSUMPTION Algeria 1.0 0.9 0.7 0.5 0.6 0.5 0.4 0.4 0.4 0.4 0.4 - t Egypt 0.9 0.9 0.8 0.7 0.8 0.9 1.1 0.9 1.0 1.0 1.0 2.6% t South Africa 73.8 69.5 71.3 70.1 67.3 69.8 73.6 77.4 81.7 84.4 87.9 4.2% 4.0% Other Africa 5.4 5.3 6.7 6.0 5.9 6.7 6.4 6.6 6.8 6.9 6.6 -4.7% 0.3%
Total Africa 81.1 76.6 79.5 77.3 74.6 77.9 81.5 85.3 89.9 92.7 95.9 3.5% 4.3%
t Less than 0.05. (BP Amoco, 999)
Looking at the production figures of African countries, excluding South Africa, we can see that no real growth has taken place however it has remained constant at about 4,7 mtoe (Million Tons Oil Equivalent). It is encouraging to notice that despite the fact that production has not grown, consumption has increased steadily over the past 10 years by about 0,7 mtoe. Coal consumption in Morocco has also increased dramatically over the past few years.
Aspects covered in this dissertation will include:
The existing coal reserves throughout Africa, giving locality maps, in-situ tonnages, coal qualities and the exploitation of this coal.
The current role of coal in Africa, who are the main producers, exporters and consumers of coal in Africa.
Detail is given of the categories of coal produced (e.g. whether the coal is of high or low sulphur content). This plays an important role in the export market of coal due to the sensitivity towards sulphur contents, which exist, in major coal consuming countries.
The contribution of coal to the economic and regional development of the areas where coal is produced in Africa.
The export capabilities of coal from Africa to the European Countries (covering transport, ports etc).
The possible future production levels of coal in the various states in Africa, local consumption levels and where it is consumed.
The possible future production and export possibilities.
2 2. AFRICA COAL RESERVES BY COAL TYPE
2.1. ANTHRACITE DEPOSITS IN AFRICA
Small basins of anthracite are present in northeastern Morocco, as well as in the area of eastern Swaziland and in northern KwaZulu Natal in South Africa. The former is Carboniferous, but in the latter, Permian coal was upgraded into anthracite through the injection of dolerite.
2.2. BITUMINOUS COAL DEPOSITS IN AFRICA (MAP 1)
An overwhelming majority of African (and of other Gondwana) coal is of Permian age. Indeed, Karoo covers large areas of southern and middle Africa. The carbon-bearing Middle-Upper Karoo Ecca Stage, however, is limited to:
The eastern part of South Africa and adjacent countries.
The Limpopo valley and its extensions.
The Zambezi valley.
The basins surrounding Lake Malawi.
The upper Litalaba and other valleys in southeastern Zaire.
A majority of the coal accumulated in South Africa. Unfortunately most of it is non-coking; however, Wankie, in Zimbabwe, is a notable exception.
Triassic coal occurs in Southern Africa. Cretaceous coal measures appear in Nigeria, and the only major carboniferous basin is located in the Algerian Sahara.
Bituminous coal has only been found in Botswana, Egypt, Madagascar, Malawi, Morocco, Mozambique, Niger, Nigeria, Tanzania, South Africa, Zaire, Zambia and Zimbabwe.
3
AFRICA: ITUMINTOUS COAL DEPOSITS MAP L
o TUNISIA MOROCCO 1.
—.
SAHALR.S ♦ ALGERIA i -- i ..- - r .. . : LIBYA I. EGYPT \ X.
MAURITANIA ♦ -- ! \ i /.... k .... 1; i MALI ♦ r i i SENEG4 .. ^ > i NIGER .... .-- ■ / / •••••< .... CHAD T. –..1 f.,BURKINA / t ...... 1,11... SUDAN GUINEA GUINEA - ----• f: S..,....., : yASO ..,-1. \ ? -- BISSAU --'1 I '-'4- F . - 7'1 - / ! \ t ...... k. ,A. t• ! ! \ / NIGERIA (2 / r.1 SOMALIA j ..., IVORY i % • SIERRA 1 i i ` . ETHIOPIA i - .r.' --.1 COAST / 5— . LEONE i. i - .–- N ...... IGHAN /.'" CENTRAL •%-.1 N. .P---.1 LIBERIA j AFRICAN REPUBLIC...... :-.,‘ .• ♦ ....— N,' TOGO ....4 / CAMER00 1-1 BENIN 1.- / I X i ....; •-, i i ii i !UGANDY KENYA j GABON ( j "*---..... -...... ).'CONGOI. ZAIRE X.–I1 .‘ ...... - tv•-•om' \ ‘ TANZANIA \ r----, -: i t . .-:..,..c)c. MALAVVICe ---r•-•A. ANGOLA is ...... -1,:‘...... ,...j MOZAMBI UE 1 s ZAMBIA
NAMIBIA j BOTSWANA
SWAZILAND
\d • SOUTH AFRICA LESOTHO
SOURCE: LEA COAL RESEARCH
4 2.3. LIGNITE
Small deposits of lignite occur in many countries of Africa, notably in those that do not contain coal. The tertiary deposits of Nigeria appear to be extensive. It should be noted that peat is also abundant in the moors of High Africa and in the coastal swamps.
NORTH AFRICA
In Libya seams and lenses of low-grade lignite are found, generally interbedded with marl, carbonaceous clay and limestone. The Shek-Shuk seams, interbedded between clays and dunes, attain a thickness of up to 1,0 metres.
In Algeria, lignite in early Cretaceous sediments of the northern Sahara.
In Morocco thin lenses of lignite are found in Triassic layers at Skoura, in the Lias of Sefrou and Tamda, in the Dogger of Boulemane, and in the Miocene sequence of Guercif and Rhafsai.
WEST AFRICA
In the tidal creeks of Sierra Leone sulphurous lignite outcrops between clays of the Pleistocene Bullom Series. On the coast a 1,0 metre seam of lignite is found at a depth of 60 metres.
In Nigeria a 100 km long lignite belt follows a northeasterly direction across the Niger to the principal field. The early Tertiary lignite measures consist of a 6 metre thick main seam, 4 metres of argillaceous shale and an upper seam averaging 2 metres, covered by 80 metres of sand and clay. Numerous other seams occur in this field.
EASTERN AFRICA
In Ethiopia 1,0 metre thick lignite lenses are found in 10 metres of Miocene marls. A 200 km long belt of lignite deposits extends along the escarpment of the Rift Valley.
In northern Somalia, Eocene lignite shows at Daban, near Berbera, and Cretaceous material occurs near Onkhor. In addition thin lignite seams are found at Durbo.
As in Ethiopia, lignite may occur in the Kenya Rift Valley.
5 In Uganda, lenses of lignite are located in the Kisegi Valley.
SOUTHERN AFRICA
In Madagascar lignite occurs in the area of Sambaina, southwest of Tananarivo, three seams lie under shallow cover. A 0,7 metre thick seam dips slightly.
In southern Cape Province, South Africa, 13% tar can be extracted from the lignite of Knysna. Other occurrences are located at Albertinia, Phillipi, Strandfontein, in the Uitenhaage Series of Cape Province, and on the coast of Zululand.
6 3. COUNTRY ANALYSES
3. 1. BOTSWANA (MAP 2)
3.1. 1. EXPLORATION HISTORY
Coal was known to exist in Botswana at the end of the last century and exploratory boreholes were sunk near Morupule to investigate the known coal occurrences of that area (Molyneux, 1903).
Systematic exploration did not begin until 1948 when reconnaissance investigations were conducted by the newly founded Geological Survey in the then known coal areas of Morupule and Mmamabula. This work and the detailed follow-up exploration demonstrated the presence of significant coal deposits in both areas. Exploration was then taken up by private mining companies and in the late 1960s both Mmamabula and Morupule coal areas had been re- appraised by the Anglo American Corporation. The company explored the eastern part of the Morupule area in detail and confirmed the presence of coal reserves of sufficient quantity and quality to support a mine that eventually came into production in 1973.
Since 1970, interest in the coal resources of Botswana has attracted the attention of several companies and a significant area of the country has now been examined, on varying scales of detail, for coal deposits of possible economic potential. The results of exploration to date have confirmed the presence of very large resources of low-medium quality bituminous coal, which in certain areas responds to beneficiation to produce large tonnages of coal suitable for export markets. Coal with satisfactory coking properties has not yet been found. The one colliery at Morupule, while capable of considerably larger production, is at present producing approximately 700 000 tons per year which completely satisfies the local market demand, mainly the power stations at Selebi-Phikwe and Gaborone, and the smelter at the Selebi-Phikwe copper/nickel mine.
The coal exploration carried out to date in Botswana has been virtually confined to licence areas covering the sub-outcrop regions of the Karoo sediments along the eastern and southern margins of the Kalahari-Karoo Basin. The degree of exploration carried out varies from one licence area to another, but for convenience the following account of the coal resources of Botswana is described in terms of the original prospecting licences. The resources quoted have been calculated by a variety of different methods not discussed here: in general, a minimum seam thickness of at least
7 1,0 metre and maximum depth of 200 to 300 metres have been used to define resource areas. Proximate analyses have all been converted to a moisture-free basis for comparative purposes this has proved to be particularly important due to the wide spread in air dried and capacity moisture values. (Clark, et al. 1986: 2071/2072)
3.1.2. COALFIELDS
3.1.2.1. MORUPULE AND MOIJABANA
MORUPULE COALFIELD
The initial prospecting in the Morupule area was carried out by the Geological Survey in 1959 when a small area of approximately 25 km was investigated along the eastern boundary of the coalfield.
The Anglo American Corporation carried out a detailed investigation at Morupule in 1970 and confirmed the existence of mineable seams which led eventually to the establishment of the Morupule Colliery in 1973.
Shell Coal Botswana has prospected the area west of this mining lease in detail (1977, 1979, 1982 and 1983). It was established that considerable resources of medium ash bituminous coal existed in the Morupule and adjacent Moijabana areas in westward continuations of the same seams recognised near the Morupule Colliery. Shell Coal Botswana conducted a detailed feasibility study for the production of 5 to 10 million sales tons of export quality steam coal from a lease area to the west of Morupule Colliery, known as Kgaswe, but at that time, the route to the sea proved to expensive and the project was shelved.
The main north-south railway line lies a short distance to the east of the coal areas. There is a short railway linking Morupule Colliery with the main line at Palapye and the Serowe to Palapye main road crosses the Morupule Coalfield. o The overlying Morupule Formation of the Ecca Group consists of an approximately 60 metre thick sequence of carbonaceous clays and coals with some locally developed sandstone. At the base of the Morupule Formation there is a well-developed coal seam known as the Morupule Main; it is this seam that is being extracted at Morupule Colliery.
8 The succeeding Serowe Formation consists of a lower, laterally persistent siltstone horizon overlain by some 30 metres of carbonaceous clay and coal. The coals in the Serowe Formation, for the most part are poorly developed, but near the top of the formation is one seam (called the Serowe Bright) containing bright coal that is of possible economic importance. Sediments of the Tlhabala Formation which, in turn are overlain by the Lebung Group, conformably overlie the Serowe Formation. The largely unconsolidated Kalahari beds cover the Karoo Sequence and vary in thickness from a few metres to more than 40 metres.
The thickest and most consistently developed coal seams containing the best quality coal so far found occur in the Morupule Coalfield. Three seams of economic potential have been recognised, of which only the Morupule Main Seam is being exploited at the Morupule Colliery.
The Morupule Main Seam is laterally persistent over a very wide area. Throughout most of the area the seam maintains a thickness of between 6,5 and 9,5 metres. It thins towards the northern and southern limits, where the seam thickness decreases to about 1,0 metre. Along the eastern boundary of the coalfield the coal seam lies within 40 metres of the surface. The seam in this sub-outcrop zone is weathered, but westwards it lies at greater depths of more than 300 metres and with a thickness in the order of 6,0 metres.
Some 7 to 10 metres above the Morupule Main Seam a carbonaceous sequence is present, which locally contains poor quality coals. Although these coals are in places of mineable thickness, their patchy distribution and low quality do not render them of economic interest and they are, therefore, not included in the resource estimates.
The Lotsane is the next seam of economic interest; it lies some 30 to 60 metres above the Morupule Main Seam. This seam occurs at the top of the carbonaceous sequence within the upper part of the Morupule Formation. It varies in thickness from 0,6 to 4,5 metres and the proportion of coal and sterile parting varies greatly. The coal quality is less consistent than that of the Morupule Main Seam: it is a mixed mainly bright coal with a high ash content due to the many dirt bands, resulting in a lower calorific value of the raw coal than the Morupule Main Seam. West of the Morupule area boreholes have intersected the seam at depths of more than 250 metres.
The Serowe Bright Seam is separated from the underlying Lotsane Seam by some 50 metres of siltstones, carbonaceous shales and thin coal bands. The seam lies at the top of the Serowe Formation, averages 1,8 metres in thickness and comprises two or three bands of
9 mainly bright • coal separated by thin, laterally extensive, claystone horizons. The seam appears to thin towards the north and south, but it maintains a mineable thickness over a large area. Although the calorific value of this coal is similar to the Morupule Main Seam and has a high volatile content, it also has a high sulphur content and therefore, the seam is less attractive for the production of steam coal than the underlying seams. Because of the high volatile content this coal has been investigated as a potential coking coal. Over most of the area, however, the Free Swelling Index and Roga Index are far below the accepted requirements. In the few localities where these values are acceptable, the sulphur content is as high as 2,5% in the 1,4 S.G. float fraction, thus making the coal unattractive for metallurgical purposes.
The coal resources of the Morupule Coalfield are estimated for three separate areas. The first area is that reported by Shell Coal Botswana (1983) which comprises most of the coalfield outside the Kgaswe Lease area to the south-west and between this lease area and the Morupule Colliery to the east. A total of 4 980 million tons has been indicated from an intensive drilling programme of 84 boreholes or approximately 1 per kilometer squared. Nearly 50% of this resource tonnage may actually be classified as proven reserves. o The raw coal quality given as global averages in Tables 3.1. and 3.2. conceal the presence of significant quality variations within this part of the coalfield. Nevertheless the major portion of these resources are probably suitable for domestic consumption. o Capacity moisture tests on coal samples for these three seams show a range of values from 5 to 7,5% with the highest values occurring in coal between the Kgaswe Lease area and the Morupule Colliery. The implication of high capacity moisture values is to downgrade the export potential of washed coal because, to achieve the required specification, the coal must be washed at a lower density giving a lower yield. In the areas described here very little of this resource reaches international market specification when washed at S.G. 1,5 and the yields are rather low.
It is not possible at this stage to discuss reserves and quality within the Kgaswe Lease area. However, by extrapolation from known areas outside the lease boundaries it is estimated that resources of at least 2 840 million tons are present. This figure is derived by applying the smaller of the average thickness and S.G. values given in Tables 3.1. and 3.2. and assuming the resource area is equal to the lease area of 200 km.
10 The total then comprises:
1 800 million tons of Morupule Main.
570 million tons of Lotsane and
470 million tons of Serowe Bright.
It is also not unreasonable to assume that the coal quality in the lease area is at least as good as the best coal immediately adjacent to the lease. The third area of coal in the Morupule Coalfield is that contained within the boundaries of the Morupule Colliery. The quantity of Lotsane and Serowe Bright coal in this area is negligible due to their proximity to sub-outcrop. It may be assumed that the Morupule Main seam is at least as thick as for the area given in Table 3.2. and therefore, it is estimated that about 90 million tons of coal from this seam may be added to the resource.
The total resource for the Morupule Coalfield is, therefore, in the order of 7 910 million tons of bituminous coal with medium ash content and medium calorific value.
MOIJABANA COALFIELD
Further west, in the Moijabana area, the coal-bearing zones contain mainly very thin seams. Only in the southwest, within the other main depositional basin, are some relatively thick coal seams to be found in rocks of the Morupule Formation. The quality of the coal is, however, generally inferior to that in the Morupule area. Resources of 1 295 million tons have been located in three seams in this area by Shell Coal Botswana (1977 and 1979).
The seam in the lower part of the Ecca Group (Kamotaka Formation), at a stratigraphic level below that of the Morupule Main Seam in the Morupule area, varies in thickness from less than 1,0 metre to more than 4,0 metres. This seam contains some 300 million tons, with a high ash content of 29%, a calorific value 20 MJ/kg and has a very poor yield for washed coal.
The Basal seam of the carbonaceous sequence in the middle of the Ecca Group (Morupule Formation) contains approximately 420 million tons of coal; this seam locally reaches a thickness of 2,0 metres, but averages only about 1,0 metre. The quality is better than for the underlying seam but the thickness is probably less than an economic mining thickness.
I1 Similarly a thin coal seam in the Serowe Formation, rarely exceeding 1,0 metre, is estimated to contain 575 million tons of coal.
All the coal resources of the Moijabana area are inferior in quality to that found at Morupule and it is doubtful if any are of economic significance within the near to mid-term future.
TABLE 3.1. IN-SITU COAL RESOURCES SOUTH-WEST OF KGASWE LEASE AREA
Seam Serowe Bright Lotsane Morupule Main
Average Thickness (m) 1.61 1.72 5.91 Average S.G. 1.62 1.65 1.56 In-situ Tonnage (kilotons) 437 199 777 164 2 679 415
Raw Ash % 32.3 36.3 25.4 Volatiles % 31.8 26.1 23.3 GCV (MJ/kg) 20.73 19.59 23.08 Sulphur % 6.45 2.35 1.52
Washed Yield % 52.0 43.1 47.4 Cum Ash % 14.7 12.9 13.5 Float @ Volatiles % 37.8 34.7 26.7 1.5 S.G.GCV (MJ/kg) 27.61 28.28 27.77 Sulphur % 2.64 0.72 0.41 N.B. All tonnage estimates have been reduced by 5 to 15% because of numerous dolerite dykes. Quality is reported moisture free.
TABLE 3.2. SUMMARY OF IN-SITU COAL RESOURCES BETWEEN THE KGASWE LEASE AREA AND THE MORUPULE COLLIERY
Seam Serowe Bright Lotsane Morupule Main
Average Thickness (m) 2.43 2.71 8.70 Average S.G. 1.47 1.65 1.53 In-situ Tonnage (KILOTONS) 40 807 235 518 811 148
Raw Ash % 22.3 37.3 21.1 Volatiles % 32.4 26.2 24.3 GCV (MJ/kg) 24.88 19.17 24.41 Sulphur % 1.91 1.48 1.44
Washed Yield % 70.7 35.0 48.2 Cum Float Ash % 13.0 13.4 11.7 @ 1.5 SG Volatiles % 36.2 34.9 26.5 GCV (MJ/kg) 28.23 27.94 28.32 Sulphur % 0.97 0.87 0.31
PRODUCTION FROM THESE COALFIELDS
At the present time only the Morupule Main Seam of the Morupule area is being exploited from the only colliery in the country, situated at Morupule. The coal is being mined by a conventional
12 underground bord and pillar operation, but the mine has been designed in such a manner that it can be converted at any time from an underground operation into an opencast mine. Access to the workings is through three portals in the coal seam at the bottom of a box-cut, which would be utilised if an opencast working is brought into operation. At present, the mine is producing some 0,9 million tons of raw coal per year, which fully satisfies the domestic market.
3.1.2.2. MMAMABULA COALFIELD
Detailed prospecting has been carried out in the Mmamabula area situated approximately 130 km south of Morupule. The area is crossed by the north-south railway line and is quite undeveloped.
The coal resources at Mmamabula were studied in some detail by the Geological Survey in 1961. Following an initial reconnaissance programme covering some 500 km 2, detailed work was confined to a small central area of approximately 50 km 2 in which significant reserves of coal were proved.
The Anglo American Corporation re-evaluated the work already done in 1975, but carried out no new prospecting. .
Shell Coal Botswana (1982) conducted a detailed exploration of the Central area, but relinquished the licence after one year.
Amax, BP Coal Botswana and Charbonnages de France prospected the Greater Mmamabula Coalfield, from Mosomane in the south to the Limpopo River in the east, but in all cases, the prospecting licenses were relinquished.
The coals are restricted to the Ecca Group. In the west of the coal area, the Karoo sediments are overlain by Kalahari Beds up to 15 metres thick, but to the east the rocks sub-outcrop and are covered by only thin superficial sediments. In the Mmamabula area several major faults affect the Karoo strata; the northern limit of the coalfield is defined by the east-north-east-trending Zoetfontein Fault which has a downthrow to the north of at least 250 metres.
Drilling has demonstrated the continuity of coal-bearing strata to the north of the fault, but no detailed data is available. A later generation of north-west-south-east-trending faults cut the
13 Karoo strata into fault-bounded blocks and it is convenient to describe the coal resources south of the Zoetfontein Fault in terms of these separate structural units.
Within the Central Block 190 boreholes have been drilled over an area of 44 km 2. Most of the boreholes encountered coal and confirmed the presence of three seams of possible economic interest located within the Mmamabula and Mosomane formations. The general configuration of the coal-bearing strata in the Central Block is basin shaped, which dips more or less horizontal, but becoming steeper near the area of sub-outcrop and in a narrow zone adjacent to the Mabuane Fault which defines the western limit of the block. o The lowest of the three important seams, the Lower Coal Seam, is contained within the Mosomane Formation. It has an average thickness of 2,83 metres and varies in depth below surface from 30 metres in the area of sub-outcrop to 60 metres in the west. The seam consists of mixed bright banded coal with minor bands of shale locally. o The Middle Coal Seam is separated from the Lower coal by 17 to 18 metres of feldspathic, gritty sandstone and thin mudstones: this coal lies at the base of the Mmamabula Formation and appears to correlate with the Morupule Main Seam in the Morupule area. It extends over an area of 32 km 2 and has an average thickness of 5,39 metres. The Middle Seam is inferior in quality to the Lower Seam, largely due to the presence of many thin bands of carbonaceous shale, some locally reaching 0,5 metres in thickness.
TABLE 3.3. SUMMARY OF IN-SITU COAL RESOURCES MMAMABULA CENTRAL BLOCK
Seam Lower Seam Middle Seam Upper Seam
Average Thickness (m) 2.83 5.39 2.07 Average S.G. 1.50 1.54 1.67 In-situ Tonnage (KILOTONS) 159 251 212 769 70 923
Raw Ash % 19.5 20.8 34.2 Volatiles % 25.1 25.0 24.1 GCV (MJ/kg) 25.10 23.95 18.94 Sulphur % 2.08 1.68 2.19
Washed Yield % 80.0 46.0 30.0 Cum float SG 1.6 1.5 1.5 Ash % 13.3 11.4 10.1 Volatiles % 27.3 27.0 32.8 GCV (MJ/kg) 27.35 27.76 28.24 Sulphur % 0.44 0.41 0.42
14 o The third seam of possible economic potential is the Upper Coal Seam situated approximately 10 metres above the Middle Coal Seam. This seam is restricted in area and extends over only 15 km2 with an average thickness of 2,07 metres. This coal will probably only has economic potential if strip mining is practiced. The Upper Seam has the poorest quality of the three seams and comprises bright coal, particularly at the base, intercalated with carbonaceous shale bands.
3.1.2.3. LETLHAKENG COALFIELD
The Letlhakeng area, approximately 8 000 km 2 in size, was prospected by Shell Coal Botswana (1977, 1979 and 1982) and during its exploration programme from 1974 to 1982, a total of 217 boreholes were drilled at a spacing varying from 1,2 km to about 10 km.
The borehole data, as well as the results of the regional aeromagnetic survey, confirmed the presence of two generations of faulting with similar trends to those at Mmamabula. A series of northwest-south-east-trending faults divides the area into horst and graben features, the strata within each faulted block being undeformed and generally flat lying, and with dips not exceeding 3°. Along the northern boundary of the area the lower Karoo sediments are faulted against the Stormberg Lava Group, which lies north of an east-northeast-trending fault that is probably a westward extension of the Zoetfontein Fault, with a downthrow to the north in the order of 500 metres. This fault is displaced by later northwest-south-east-trending faults.
The main coal development lies in four parts (two in the east and two in the west) separated by a horst-like structure occupying the centre of the Letlhakeng area.
The E2b Seam occurs in the Mosomane Formation interbedded with fluviatile sandstones. It ranges in thickness from 1,45 to 3,16 metres in the eastern region, where it is more persistent and better developed than in the west. The seam contains mostly dull coal with scattered bands of bright coal. The E2b Seam has been traced at depths varying from 60 to 200 metres and it has been estimated to contain more than 1 000 million tons of reserves in the eastern region. The best quality coal in this seam occurs near the sub-outcrop in the southeast of the eastern region, which contains some 326 million tons of in-situ reserves of high-volatile bituminous coal. Charbonnages de France evaluated the economic potential of this coal seam in 1982.
The overlying Boritse Formation in the west, and the Mmamabula Formation in the east, contain many coal seams; the majority are thin and interbedded with thin mudstones to form coal zones up to 20 metres thick. The proportion of coal in such zones is usually less than 50% and
15 individual seams rarely exceed 1,5 metres in thickness. Although these coal seams contain large amounts of coal the quality and thickness of the seams is such that most of the coal is of no economic interest.
In parts of both the eastern and western regions there is a Basal Seam in the Boritse and Mmamabula formations, known as Gi Seam, which has been traced at depths of from 80 to 220 metres. In the western region the seam varies in thickness from 1,3 to 4,7 metres and is estimated to contain 1 250 million tons of in-situ coal. The coal quality is generally inferior to that found in the eastern region. The same seam in the eastern region varies in thickness from about 2,9 to 7,4 metres near the sub-outcrop in the southeast of the eastern region. It is near the sub- outcrop that the best quality coal is developed and some 679 million tons of in-situ coal has been identified here and a further 600 million tons in the remainder of the eastern region.
TABLE 3.4. IN-SITU COAL RESOURCES "SOUTH BLOCK-E", LETLHAKENG AREA
Seam E2b Seam Gi Seam
Average Thickness (m) 1.71 4.51 Average S.G. 1.50 1.55 In-situ Tonnage (Kilotons) 325 800 679 274
Raw Ash % 18.7 23.3 Volatiles % 28.3 25.3 GCV (MJ/kg) 25.04 22.83 Sulphur % 1.86 1.41
Washed Yield % 74.0 52.3 Cum Ash % 9.3 9.5 Float @ Volatiles % 30.9 28.4 1.5 SC GCV (MJ/kg) 28.66 28.25 Sulphur % 0.41 0.36 Quality is reported moisture free
3.1.2.4. DUTLWE COALFIELD
The Dutlwe area of some 5 000 km2 was investigated by BP Botswana Exploration Company in 1976. The coal resources located during the exploration drilling are almost entirely restricted to the Ecca Group, within strata equated with the former Middle and Upper Ecca Stages of South Africa. On the basis of the limited number of boreholes drilled the thin seams within the coal zone of the upper part of the Ecca Group appear to have no commercial potential.
16 Beneath this coal zone six to seven seams have been identified of which two attain mineable dimensions. The two seams thicken toward the eastern part of the area, where 11 of the total number of boreholes were drilled, providing a sufficient drilling density for the stratigraphy to be correlated between boreholes.
Seven boreholes intersected a lower Main Seam, which varied in thickness from 1,5 to 4 metres. Washing tests carried out indicated that at S.G. 1,5 the Main Seam would produce a coal with a calorific value of 26,88 MJ/kg, ash content of 13,4% and sulphur content of 0,6% at a yield of 50% per cent (moisture-free basis). Washing at 1,7 increased the yield to 80%, but the product had a calorific value of 24,89 MJ/kg and an ash content of 19%.
Six boreholes intersected an upper Top Seam varying in thickness from 2,3 to 3,5 metres. The Top Seam similarly treated at S.G. 1,5 would produce a coal with similar calorific value and ash content, but with a sulphur content of 1,6% and a yield of only 44%. At S. G. 1,7 the yield increases to 68%, but the product has an ash content of 22,1% and a calorific value of 24,15 MJ/kg.
In three boreholes a Third Seam below the Main Seam was intersected. The coal in this seam appeared to be of a better quality and when washed at S.G. 1,5 produced a coal with 13,0% ash content, calorific value of 26,64 MJ/kg, sulphur content of 0,3% and a yield of 71%. At a S.G. of 1,7 the yield increased to more than 95 per cent with a coal containing 16% ash and a calorific value of 25,74 MJ/kg. Insufficient data was collected to assess fully the potential of the third seam.
On the basis of the borehole data it was estimated that approximately 2 000 million tons of in-situ mineable coal is present within an area of approximately 350 km 2, the cut-off parameters used by the company being a minimum seam thickness of 1,25 metres and depth limit of 300 metres.
3.1.2.5. SERULE COALFIELD
Total Coal Botswana also prospected an area between Serule and Morupule around 1982.
In the Serule area coal occurs within the rocks of the upper part of the Ecca Group, and the coal- bearing sequence shows some similarities to the succession at Morupule, consisting of a thick Basal Seam, marking the lower limit of the Tlapana Formation, overlain by some 100 metres of mudstones containing numerous thin coal bands, which locally form seams of mineable thickness.
17 The Basal Seam is a dull coal that varies in thickness from 2,7 to 10,6 metres. Within the boreholes drilled the Basal Seam was intersected at depths that varied from 88 to 175 metres. The ash content of the raw coal is usually high (30-50 %) and the calorific value is low, of the order of 17 to 19 MJ/kg. In all boreholes the grade of this Basal Seam is inferior to that found at Morupule. Washing tests carried out on the Basal Seam indicated that at a S.G. of 1,6 a product with a 21% ash content and a calorific value of 24,67MJ/kg could be obtained, but with a yield of only 51%.
Higher in the Tlapana Formation seams of bright coal were intersected, some attaining thickness in excess of 1,5 metres. The Upper Seam at the same specific gravity would produce a coal with a 13,8% ash content, a calorific value of 27,33 MJ/kg and a yield of 64,7%.
Anglo Botswana Coal (1975) carried out reconnaissance exploration over the Serule area for possible deposits of coking coal. During their investigations ten boreholes were drilled at seven sites within the 2 500 km2 block and at all locations coal seams were intersected. This exploration programme located seams of low quality bituminous coal extending over a wide area, but the amount of drilling carried out was insufficient to assess fully the coal potential of the area. The exploration work did not, however, locate seams comparable in quality to those of the Morupule area.
TABLE 3.5. RAW ANALYSES OF COALS IN THE SERULE AREA
Depth Thickness Ash % Volatiles % GCV(MJ/kg) ( m ) (m)
Upper Seam 49.00 1.72 9.2 30.4 21.69 Basal Seam 92.00 2.70 34.2 20.2 20.39 Quality is reported moisture free.
3.1.2.6. FOLEY COALFIELD
The Foley area, totaling some 2 560 km 2, was investigated by Shell Coal Botswana (1977) and 20 boreholes were drilled during its prospecting activities. Coal-bearing formations were found over large parts of the area, but the coal is of too poor a quality and too irregular in development to be of economic interest at the present time.
18 The coal towards the base of the Tlapana Formation is massive in appearance and of dull and heavy type. The coal seams are irregularly developed and stratigraphic correlation between boreholes was found to be difficult. No estimates of reserves were made and the best analysis of raw coal (moisture free) was as follows:
Sample depth 186,7-188,7 metres.
Thickness 2 metres.
Volatiles 25%, fixed carbon 57,3%, ash 17,7%, calorific value 24,17 MJ/kg, sulphur 0,70%. Washing of the above sample to a 16% ash product resulted in a low yield of a coal with calorific values of not more than 24,70 MJ/kg.
In the upper part of the Tlapana Formation thin seams of bright and mixed coals occur, but most of the seams are less than 1,5 metres thick. The best raw coal analysis (moisture free) showed an ash content of 19,3%, a sulphur content of 1,8% and a calorific value of 24,18 MJ/kg. Washing to a 16% ash product produced a coal with a calorific value of 25,37 MJ/kg.
With further exploration in the Foley area it might be possible to prove some coal deposits at shallow depth which would produce low-grade coal possibly for local power generation.
3.1.2.7. DUKWE COALFIELD
The Botswana Geological Survey carried out a reconnaissance coal exploration programme in the Dukwe area from 1961 to 1963, when nine boreholes were drilled near the village of Dukwe.
Anglo Botswana Coal (1975) did further investigations in the area for possible deposits of coking coal and 12 boreholes were drilled during their investigations.
BP Coal Botswana also prospected part of the area.
The area covers some 9 000 km 2, but in the west the Karoo rocks are covered by recent sediments of the Makgadikgadi Depression and the coal potential of that part of the area had not been investigated until BP Coal Botswana began exploration during 1984. Difficult drilling conditions in the extreme east of the area, near the Zimbabwe border, prevented a full evaluation of the coal potential being made by Anglo Botswana Coal and the three boreholes drilled did not
19 intersect coal-bearing strata. Most of the drilling has been carried out along the sub-outcrop zone of the Karoo rocks east of the Makgadikgadi Depression and adjacent to Dukwe village.
The main coal-bearing zone occurs 'within carbonaccous mudstones of the Tlapana Formation. The zone has a total thickness of approximately 70 metres and includes numerous thin coal bands, which locally form seams of mineable thickness. The coal has a high-ash, medium-volatile content and has no coking properties. An analysis (moisture free) of the best coal intersected is as follows:
Depth 119,1 - 121,2 metres Thickness 2,1 metres Ash 22,1% Volatiles 25,4 % Calorific value 24,91 MJ/kg
One of the boreholes drilled by the Geological Survey intersected a seam approximately 8,7 metres thick at a depth of 139 metres, immediately south of Dukwe. The seam contains coal of marginal grade (22,1 % ash, calorific value 23,6 MJ/kg) and is overlain by two further seams 1,5 and 1,9 metres in thickness, but details of their quality are not available.
The exploratory drilling carried out has indicated the presence of high-ash, low-grade, bituminous coal, but the numerous dyke intrusions and faulting complicates the coal geology of the area.
3.1.2.8. PANDARRATENGA COALFIELD
Shell Coal Botswana (1978) drilled ten exploratory boreholes in the Pandamatenga area. The reconnaissance drilling was carried out to investigate the possible south-westward extension of the Wankie Coalfield of Zimbabwe, into Botswana.
All but two of the boreholes reached depths greater than 400 metres. The boreholes intersected very thick sequences of Kalahari Beds and Stormberg Lava Group, each reaching a thickness of 200 to 300 metres and only the upper units of the Lebung Group were reached. The results of the drilling programme, as well as geophysical evidence, suggest that the possible coal-bearing formations occur at depths of 500 to 700 metres below surface, which are presently too deep to be of economic interest.
20 3.1.2.9. NCOJANE COALFIELD
Shell Coal Botswana (1979) carried out a reconnaissance drilling programme in the Ncojane area. The purpose of the drilling was to investigate possible coal development in this virtually unknown part of the Karoo Sequence in southwest Botswana. Some 1 500 metres of drilling was carried out and all boreholes penetrated Karoo strata beneath a relatively thin cover of Kalahari Beds. No borehole reached the pre-Karoo basement, which is probably at a depth of about 600 metres. The drilling proved a minimum thickness of 450 metres of sub-horizontal Karoo strata, including parts of the Dwyka and Ecca groups locally overlain by the Kule Formation and the Lebung Group.
A limited amount of coal was encountered at two horizons thought to have been developed on the tops of two deltaic progrades comprising the Otshe Formation. The upper coal horizon was weathered and locally eroded, probably due to tectonic activity resulting in uplift. Seam thickness is all below 1,6 metres and the quality of the unweathered coal is poor, with a high ash and moisture content resulting in a very low calorific value. The quality of coal found was such that no further exploratory work is proposed.
3.1.2.10. BOBONONG COALFIELD
The Bobonong area was briefly examined by Anglo Botswana Prospecting (1975) for the possible occurrences of coal with coking properties. Only two boreholes were drilled in the 1 000 km 2 area. The borehole results indicated that rocks, which could be assigned to the Ecca Group (Seswe Formation), were very poorly developed and were overlain by a thin succession of non- carbonaceous mudstones possibly equivalent to the Tlhabala Formation.
Thin coal seams were encountered in one borehole, at depths of 106 to 108 metres. The thickest seam intersected was 1,2 metres with raw coal values of 37,8% ash content and calorific value of 18,9 MJ/kg. The poor development of coal intersected in the boreholes did not warrant further prospecting and exploration of this area is unlikely to be resumed. (Clark, et al. 1986: 2075-2085)
21 3.1.3. TOTAL RESERVES
Exploration work carried out has confirmed the presence of very large resources of high-ash, medium calorific value bituminous coals. The present annual domestic consumption is low at 700 000 tpa and is unlikely to increase significantly in the near future.
TABLE 3.6. SUMMARY OF IN—SITU COAL RESOURCES IN BOTSWANA
Area Total in situ km 2 Resources Mt
Morupule 610 7 910 S. W. Moijabana 250 1 295 Mmamabula 800 5 175 Letlhakeng 670 3 530 Dutlwe 350 2 000
Grand Total 2 680 19 915
(Clark, et al. 1986: 2084)
3.1.4. PRODUCTION TRENDS AND PROSPECTS
Botswana's coal production started in 1973 with the opening of the Morupule Colliery. The mine is currently an underground operation, but has the potential to be converted into an opencast mine should growth in demand require it. The colliery is fully mechanised, with an output of 900 000 tons/year.
According to some reports, there is little possibility that Botswana's annual coal production will increase from its present level of 900 000 tons per annum, however, some quarters are saying that a new mine to supply Eskom and Iscor of South Africa, may be developed.
Attempts to promote domestic consumption of coal have failed. Moves to increase generation at the country's only power station have been shelved, as have plans to build a second power station now that Botswana has joined the Southern African Power Pool.
22 3.1.4.1. COAL CONSUMPTION
The tonnage produced is presently consumed by:
The power station is the mine's principal customer and takes an average of 450 000 tons per annum. In 1987 three sets each of 33 MW were commissioned at Morupule, with a further 33 MW set being commissioned in 1990.
BCL Limited and Potash, a soda ash producer, take 150 000 tons a year each. The US$400 million soda ash export project at Sua Pan came on stream in 1991.
The balance of 150 000 tons goes to smaller industrial operators.
3.1.4.2. POSSIBLE NEW MINE DEVELOPMENT
Makgadikgadi Investments has applied for a mining lease to establish a new open pit colliery in the Mmamabula Coalfield some 140 km north of Gaborone. The deposit in this region has 450 million tons of proven reserves and a further 20 000 million tons are indicated. It is believed that once the mine starts producing it would be feasible to set up an adjacent power station within five years. Eskom of South Africa would probably be invited to run the power station. Another potential customer is Iscor, which carried out tests relating to the possibility of utilising some of the coal from the new mine at its plant at Saldanha Bay. Other potential users are cement plants in the Western Cape and Northern Province of South Africa.
Jock Burden, Managing director of Makgadikgadi, said recently the company had applied for a mining lease to establish the colliery at the town of Mmamabula, 140 km north of the Botswana capital, Gaborone. It is planned to produce 1,0 million tons of high quality steam coal and some metallurgical coal will be produced in the first year, rising to several million tons per year within 5 years. Burden said Iscor Mining, the South African mining company and subsidiary of steel giant Iscor, which operates in the adjacent Waterberg Coalfield in South Africa, had been invited to participate in the venture. (Baxter, 1997)
Coal would hopefully be sent 1 500 km to South Africa's iron ore plant at Saldanha Bay. However, there is as yet neither direct, nor heavy traffic rail link between Botswana and Saldanha Bay.
23 The South African power utility Eskom's Matimba power station could source 2,5 million tons of coal a year from the colliery, which is 90 km from Matimba, but as yet, the power station is not directly linked to Botswana by rail.
As Botswana, who are now members of the Southern Africa power pool, start to use more power and South Africa runs out, they could connect another station to the regional grid. Eskom indicated they would be interested in running the power station.
The viability of a colliery over the Mmamabula Coalfield is being questioned by sources in the region's coal and energy industries:
The Botswana Mining Commissioner has confirmed a mining application, but that it concerns only a preliminary licence. According to the Mining Commission, mining plans, no environmental nor water studies have been carried out.
Iscor Mining general manager Jannie Grimes expressed reservations. "We looked at it, but were not interested, mainly because of the logistics. The field is too far from the markets. It would not be viable," he said. "If a power station is built on the field, that might change the picture as regards the steam coal, but for the metallurgical product it is too far away to interest us." (Baxter, 1997)
Eskom has 3 500 megawatt capacity in mothballs and is running on a low load factor and therefore has extensive surplus capacity. There would be no need for more power sources for 15 to 20 years. Even then, a station in Mmamabula would be one of many alternatives including the Rio Tinto field and extensions to Wankie Colliery in Zimbabwe, both of which are served by existing infrastructure. A Mmamabula Colliery power station would have to beat the already marginal cost of power in the system.
3.1.5. COAL EXPORTS
Exports have been considered at various times by the Government and mining companies. Botswana's export prospects were analysed in detail in an early 1980s study by Shell Coal Botswana, which considered an export mine complex at Kgaswe in the Morupule Coalfield:
Four underground mines, each with a capacity of 2,5 million tons were envisaged as the best way to exploit the area's substantial reserves.
24 Capital and operating costs were found to be similar to a greenfield site in South Africa, with mine start-up capital cost at around US$500 (in 1982 prices).
The additional infrastructural costs associated with the project were substantial. Two export routes were considered in the study, one through South Africa and the other through Namibia:
The South African route would have required US$120 million (in 1982 prices) of investment on railway construction to join up with the existing line to Richards Bay Coal Terminal.
The Namibian option required considerably more railway construction and a new coal terminal at Walvis Bay; this option was costed at between US$760 and US$1000 million (1982 terms).
The transport costs made both projects uneconomic and especially the Walvis Bay alternative. It was estimated that, even given higher international coal prices, such a scheme could only be economic if 13 mtpa were to be exported along the line. The project was consequently dropped, and has not been subsequently revived.
Exports via Saldanha Bay were considered more recently, which would involve the constructing of a new line to Sishen in the RSA from the Botswana Coalfields. With international coal prices unlikely to rise sufficiently to justify the cost of this project, it is likely to remain dormant until export coal prices increase sufficiently to justify the project.
In all of the above cases coal exports from Botswana seem highly unlikely due to the long distances from the coast, high infrastructure costs and low coal prices in the industry. (IEA Coal Research, 1991: 46)
3.1.6. CONTRIBUTION OF COAL TO THE ECONOMIC AND REGIONAL DEVELOMPENT
3.1.6.1. ECONOMIC GROWTH
As a result of the discovery of diamonds after independence, the country enjoyed uninterrupted economic growth and a soaring per capita income since diamond mining began in 1971. The diamond industry transformed Botswana from an agriculture-based economy to one in which diamonds account for 80% of exports and 50% of government revenue. (South African Development Community, 1997: 2.4)
25 With the expected growth in the mining industry in the future, it may be necessary to develop a second mine-mouth power station to supply the increase in electricity demand, which would double coal production capacity over the long term.
3.1.6.2. MINING'S CONTRIBUTION TO THE ECONOMY
Minerals provide a base for the economy and the country is now the third largest African mining producer after South Africa and the Democratic Republic of Congo (Zaire). Diamonds, copper - nickel, soda ash and coal are mined, as well as small amounts of gold. (South African Development Community, 1997: 2.10)
The Morupule Colliery (the only colliery in Botswana) employs 335 people (out of a population of 1,325 million).
Most domestic electricity production is coal-fired from the Morupule power station. In the country districts, some power is generated using diesel generators. Some power is imported from South Africa and Zambia.
The mining industry is the largest consumer of electricity (over half of the total), although domestic and commercial consumption has risen fast in recent years. Growth in demand is to be met through imports rather than by expansion of capacity at Morupule.
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28 3.2. EGYPT (MAP 3)
3.2.1. COAL RESOURCES
Egypt has limited coal resources, located mainly in the Sinai Peninsula and comprises coals of a widely varying quality. Three deposits have been explored to some extent, and contain proved and probable reserves of up to 150 million tons. However, economically recoverable reserves are currently estimated at about 27 million tons. (IEA Coal Research, 1991: 48)
3.2.1.1. COALFIELDS
BUDA-THORA
This coal region has low quality coal deposits estimated to total 75 million tons. Sulphur content is under 1%, the lowest of any Egyptian deposit yet found, but a calorific value of under 17 MJ/kg and ash content of up to 49% which makes it economically unattractive.
AYUN MUSA
Ayun Musa holds around 19 million tons of coal, which varies considerably in quality. A one metre thick seam is available but the depth, 500-600 metres, makes this economically unattractive. With water problems as well, it is unlikely to be developed.
MAGHARA
Maghara has the best quality coal yet found in Egypt, and the only economically recoverable reserves. These total 27 million tons of recoverable reserves out of inferred in-situ reserves of 130 million tons.
The two seams, the Main (1,1 - 1,9 metres thick) and Upper (0,7 metres thick), contain the most economically recoverable reserves. Calorific value is good, at over 30 MJ/kg and ash content is under 7%. Sulphur levels are, however, high at 3%. (IEA Coal Research, 1991: 49)
29 TABLE 3.8. EGYPT - COAL QUALITIES
MAGHARA AYUN MUSA BUDA-THORA
Moisture % 4.9 7.2 - 12.4 2.0 - 3.8 Ash % 6.5 8.9 - 23.4 39.0 - 49.0 Volatiles % 50.7 35.7 - 46.5 17.0 - 27.0 Fixed Carbon % 37.9 24.6 - 36.1 30.0 - 40.0 Sulphur % 3.0 1.0 - 4.9 0.4 - 1.0 Gross Calorific value MJ/kg 30.4 22.3 - 26.4 16.7
3.2.2. COAL PRODUCTION AND DEMAND PROSPECTS
Coal mine development began in 1964, when construction started on the Safa Mine at Maghara. It was intended to build-up production in three stages to 450 kilotons/annum; however, in 1967 the development was stopped by war. The mine drifts were blocked and equipment destroyed, and Israel occupied the area until 1980.
With the return of the Sinai Peninsula to Egypt at that date the reconstruction of the mine once again became a possibility. During the early 1980s plans were formulated for a longwall with a final capacity of 750 000 tpa. Until 1989 however, financing was not forthcoming, but capital was eventually raised through the United Kingdom. The mine life was estimated at 24 years, based on reaching output of 750 000 tpa. The mine was refurbished during 1990. (IEA Coal Research, 1991: 49)
Egypt imported about 1,3 million tons of metallurgical coal in 1990, mainly for its own steel industry with some exports of coke to neighbouring countries, e.g. Tunisia. The state-owned Egyptian Iron and Steel Company (EISCO) is the only integrated blast furnace steelmaker in the country. EISCO produced 0,88 million tons of crude steel in 1990 but demand for steel products exceeds domestic supply by a wide margin and steel imports are necessary.
By 1996, EISCO's increased annual raw steel capacity to 2,6 million tons, further increasing imported metallurgical coal demand to 1,6 million tons. Coal from Maghara is a weak coking coal and the shortfall in coking coal requirements is being made up from local production, which is used as a blend coking coal.
30 3.2.3. COAL-FIRED POWER GENERATION
There is no existing coal-fired capacity in the electricity generation sector. However, two coal-fired power stations totalling 1 800 MW have been planned. o The first one is a power station at Ayun Musa (2 x 300 MW) in the Sinai Peninsula, capable of burning coal and gas. The plant could take most of its coal from the local Maghara mine which is being rehabilitated. o The second one is the Zafarana power station (2 x 600 MW) on the Red Sea coast. Gas and imported coal could fuel this station.
Fund raising discussions with the World Bank and other agencies have continued for several years but the lenders are critical of the subsidised electricity tariff structure in the country. Recent indications are that the Egyptian government might be willing to increase electricity prices to industry by 30 to 40% in response to the demands of lenders.
3.2.4. CONTRIBUTION OF COAL TO THE ECONOMIC AND REGIONAL DEVELOMPENT
3.2.4.1. ECONOMIC GROWTH
Egypt's economy has for some years depended heavily on revenues from oil sales, remittances from Egyptian nationals working overseas, tourism and revenues from the Suez Canal. Problems for the tourist industry due to terrorist activity by Islamic militant groups remain and these, together with the fall in oil prices, are reflected in some decline in economic growth. The oil sector accounts for over 15% of GDP and more than 50% of export earnings.
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KEY INTERNATIONAL BORDERS
33 3. MALAWI (MAP 4)
3.3.1. COAL RESOURCES AND QUALITIES
The main coalfields in Malawi are located within the Karroo Basins in the southern and northern parts of the country. There are nine main coalfields that have been mapped in detail, but systematic delineation of the size of coal resources has only been undertaken in five of them.
Malawi has sufficient coal resources to satisfy the local demand and at the same time export to neighbouring countries. The current proven reserves is estimated at 20 million tons. However, the potential resources of coal are now thought to exceed 500 million tons.
Until 1985, Malawi used to import all its coal requirements from neighbouring countries especially Mozambique. In 1985, Mining Investment and Development Corporation, (NMCOR), a parastatal under the Ministry of Energy and Mining opened a small coal mine at Kaziwiziwi in the Rumphi district to ease the problems of erratic coal supply that were being faced at that time, due to insurgent activities in the neighbouring Mozambique.
At present, there is only one coal mine at Mchenga in the Rumphi District, which is operated by a Consortium of two institutions, the Malawi Development Corporation (MDC) and Inde Bank.
3.3.2. STRATIGRAPHY OF THE KAROO SYSTEM IN MALAWI
Sedimentary rocks belonging to the Karoo System host all the coal deposits so far known in Malawi, which range in age from Permian to Upper Triassic. The sedimentary rocks unconformably overlie the Precambrian Basement crystalline rocks. The Karroo sediments were deposited in trough or graben-like basins that are in close proximity to the present and much younger Lake Malawi - Shire and Luangwa Rift Systems. There is however, no direct evidence that deposition of the Karroo was associated with an earlier period of rifting.
The generalised stratigraphic sequence consists of basal beds comprising conglomerates and sandstones. These are overlain by a coal measure sequence of sandstones, carbonaceous shales and coal seams. The succession is completed by thick developments of arkose and shale, mudstone, marls and grits.
The stratigraphy in the coal measures is variable, but in general there are multiple seams alternating with mudstones and shales.
34 TABLE 3.10.COAL RESERVES AND RESOURCES OF MALAWI (IN MILLION TONS)
Deposit Proven Probable Possible Reserves Resources Resources
Ngana 15.0 50.0 Lufira 0.6 2.0 - Livingstonia 1.4 5.0 20.0 North Rukuru - 5.0 150.0 Nthalire - 15.0 Kibwe 3.0 Mwankenja - 1.0 5.0 Mwahvi 5.0 - 10.0 Lengwe 10.0
3.3.3. MALAWI COAL RESOURCES AND CHARACTERISTICS
The Gondwana coals of Malawi are ranked sub-bituminous, with low to high ash, high volatile matter and low sulphur contents.
3.3.3.1. NGANA COALFIELD
The Ngana Coalfield is located in Karonga district in the northern part of Malawi. The coalfield has been geologically investigated in detail and it occurs in an L-shaped fault-bounded trough covering an area of 60 square kilometres. Drilling indicated reserves are placed at 15 million tons with an average of 4,5% moisture content, 30,2% ash, 24,9% volatile matter, 32,8% fixed carbon, and 2,2% sulphur. The coal has an average calorific value of 4 708 kcals/kg. Both open cast and underground methods can mine the deposit.
There is a further possible resource of 50 million tons to a depth of 200 metres.
3.3.3.2. LUFIRA COALFIELD
The Lufira Coalfield occupies a small Karroo basin northeast of Karonga Township. The coalfield covers an area of about 6 square kilometres and the sedimentary sequence consists of Basal beds over 100 metres thick, overlain by coal measures over 20 metres thick. The upper part of the sequence consists of over 40 metres thick of sandstones and shales. There are 4 to 12 seams in the coal measures ranging in thickness from 4 millimetre to 2,45 metres.
35 It has 600 000 tons of drill indicated reserves with another possible resource of 2,0 million tons to a depth of 50 metres. The Lufira coal has a relatively high ash content averaging 35,0%, 6,6% moisture content, 25,9% volatile matter, 31,8% fixed carbon, and 0,77% sulphur. The calorific value ranges from 1 147 - 5 019 kcals/kg with an average of 3819 kcal/kg.
3.33.3. LIVINGSTONIA COALFIELD
The Livingstonia coalfield, where the Mchenga Colliery is located, is found in Rumphi district. The sedimentary sequence consists of over 70 metres thickness of Basal Beds, which lie unconformably on the metamorphic basement. Coal measures ranging in thickness from 30 to 107 metres are overlain by a thick sequence, exceeding 700 metres, of mudstones, siltstones and grits. The area is extensively block-faulted and the formations are largely flat lying. Coal seams range from 0,3 to 2,7 metres in thickness.
Only a small section of the coalfield has been evaluated and reserves of 1,4 million tons have been blocked out by drilling. However the total reserves have been inferred at over 20 million tons. The coal is characterised by an average of 17,0% ash content; 1,1-18,0% moisture; 5 037,3% volatile matter; 5,6-64,2% fixed carbon, 0,06-0,9% sulphur and an average calorific value of 6 800 kcals/kg.
The area that is presently being mined has coal with an average ash content of 14,0%.
3.3.3.4. NORTH RUKURU COALFIELD
The North Rukuru coalfield is the largest in the country, covering an area of 150 square kilometres. The succession is regarded to be similar to that at Ngana and Lufira. The inferred resource is placed at 150 million tons assuming a 2,0 metre thick coal seam extending over 25 kilometres along strike. Proximate analyses of the coal have shown averages of 32,4% ash, 4,2% moisture, 23,7% volatile matter, 40,6% fixed carbon and 0,6% sulphur. The calorific value is relatively high averaging 4 781 kcals/kg. Although the coalfield has not been examined in greater detail, it is one of the most important coal deposits for medium scale development.
3.3.3.5 iiiiINABVI COALFIELD
The Mwabvi basin, which covers an area of 400 square kilometres, is located in the southern part of the country in Nsanje District. The general succession consists of coal shales, which pass into
36 sandstones, grits, shales and red beds. The area has been affected by complex faulting so that the contacts within the sedimentary sequence are faulted. The coalfield is located close to the main consuming industries in Blantyre. It is only 140 km from Blantyre and 440 km from Lilongwe.
Only a very small section of the potential coalfield has been geologically investigated. Drilling has indicated reserves of 2,2 million tons with less than 40% ash and at depths less than 50 metres, and further 2,5 million tons to a depth of 100 metres. The coal at Mwabvi is ranked as semi- anthracite. The Mwabvi coal has an average of 45,2% ash content, 6,8% volatile matter, 50,5% fixed carbon and 0,76% sulphur. The calorific value average 4 173 kcals/kg. The quality of the coal can be improved by washing.
3.3.3.6 OTHER COALFIELDS
There are other coalfields that have been mapped but not examined in detail. These are Nthalire, Mwankenja-Mwapu-Mwesia, and Kibwe, all located in the northern region. These coalfields have speculated resources of over 20 million tons.
The Lengwe coalfield, which is in Chikwawa district in the southern region, has been examined in great detail. However, the very high ash content makes the coal there of limited interest.
TABLE 3.11. CHARACTERISTICS OF THE MAIN COAL DEPOSITS IN MALAWI
Deposit Moisture Ash VM FC CV Sulphur (kcal/kg)
Ngana 4.5 30.2 24.9 32.8 4 708 2.2 Lufira 6.6 35.0 25.9 31.8 3 819 0.7 Livingstonia 3.0 17.0 22.0 50.4 6 800 0.5 North Rukuru 4.2 32.4 23.7 40.6 4 781 0.6 Mwabvi - 40.0 6.8 50.5 4 173 0.7 Lengwe 1.7 59.2 10.5 30.3 2 746 0.5
3.3.4. COAL PRODUCTION
The first coal mine in Malawi opened in 1985 at Kaziwiziwi which is located within the Livingstonia coalfield in Rumphi district. Prior to this time, coal was being imported into Malawi from neighbouring countries such as Mozambique, Zimbabwe and Zambia. Because of problems with supply, the Government through a parastatal organisation, Mining Investment and Development Corporation (MIDCOR) opened the Kaziwiziwi coal mine in order to ensure a sustained supply of coal to the local industries. Four years later, the Kaziwiziwi coal mine closed and coal mining was
37 shifted to Mchenga that is located within the same Livingstonia Coalfield. The Mchenga coal mine has been operating since that time. The only operating coal mine is located at Mchenga in Rumphi District. The mine produces about 50 000 tons of coal per annum. In 1994 the mine was privatised and is now being operated by a consortium of two institutions, the Malawi Development Corporation and Inde Bank. Levels of production have fluctuated over the years and in 1994, the mine went through major rehabilitation, and production decreased relative to the previous years. The geographical location of the Mchenga mine makes it only accessible by road. The railway line that connects Blantyre and Lilongwe reaches Chipoka in Salima district that is the only railway outlet to the water transport system. The nearest port to Mchenga mine is Chilumba. Thus the mine is located in an area where a least cost transport system is not available at the moment.
3.3.5. PRESENT CONSURIIPTOON
Coal accounts for about 1% of Malawi's primary energy supply. Fuelwood is the most predominant source of energy accounting for about 90% of the total energy consumption. Coal, is however of critical importance to the country as some key industries totally depend on it for their operation. It is utilised in the industry for the manufacture of cement, textiles, detergents, tobacco processing and brewing of opaque beer to mention a few.
The present annual consumption of coal by local industries in Malawi is estimated at about 60 000 tons. This is projected to rise to 120 000 tons in the next few years due to the rapid development of primary industries that is taking place including the proposed pulp and paper industry.
With increased demand for coal, mining of coal will grow sympathetically. An exhaustive estimate has not been made of what the actual consumption of coal would be if it were freely available and at competitive prices.
The level of consumption is currently small. Most of the coal consuming industries are located in Lilongwe and Blantyre, some 480 km and 830 km from the Mchenga Coal Mine respectively. Because of the long distances and the fact that the coal is transported by road to the major industrial cities, the landed cost of coal from this mine was and has always been higher than the cost of imported coal from Moatize in Mozambique. Moatize Colliery is only 225 km from Blantyre. This has a significant impact on the landed cost of coal in the main industrial cities of Lilongwe and Blantyre. Some individual companies therefore still import coal from Moatize.
38 TABLE 3.12. MAJOR CONSUMERS OF COAL IN MALAWI
COMPANY TONS TYPE PER YEAR
AMI 360.0 Peas Carlsberg Brewery 120.0 Peas Chibuku Brewery 1 260.0 Peas Dimon 3 000.0 Duff Encor Products 180.0 Peas Ethanol Company 2 400.0 Peas Impala Farming 1 992.0 Sized Knitwear 3 600.0 Peas Lever Brothers 6 000.0 Peas Limbe Leaf 6 504.0 Peas Napolo Ukana Brewery 1 020.0 Nuts Press Agriculture Tobacco 12 000.0 Sized Tobacco Processors 4 992.0 Peas Universal Industries 360.0 Peas
TOTAL ANNUAL CONSUMPTION 43 788.0
For institutional and household use, there is little knowledge about the use of this energy source. In addition, there is lack of appropriate appliances such as stoves and proper marketing outlets.
3.3.6. ELECTRIC POWER GENERATION
The main source of electricity for industries in Malawi is from hydro-power generation on the Shire River and, to a very small degree, diesel powered generators. In recent years, electricity supply in the country has been insufficient and one of the reasons for this is the low water level in the Shire river due to persistent drought in recent years. Exploitation of the coal resources in the country therefore offers an important alternative for electricity power generation. This sector will, probably become one of the most important potential consumers of coal in the 21st century. In fact the demand for electricity at present outstrips the supply. Possibilities of expansion of the hydro- power generation are constrained due to the reason outlined.
The coal from Ngana and North Rukuru Coalfields in the north and coal from Mwabvi Coalfield in the south could be used for electrical power generation. Thus the possibility of using coal to generate electricity should be given careful and urgent consideration, in order to complement hydro-power generation.
39 3.3.7. EXPORT POTENTIAL OF MALAWI COAL
Neighbouring countries such as Mozambique, Zambia and Zimbabwe have their own coal resources. However, there is a high potential of exporting the Malawi coal to these neighbours since the coal consumers in these countries may be located closer to the Malawi deposits. This is exactly what is happening in Malawi, industries in the Southern region are importing coal from Moatize in Mozambique because of its proximity to the industries compared to Mchenga Mine which is located 830 km from Blantyre. Moatize colliery is only 225 km from Blantyre. The Mwabvi Coalfield is closer to Blantyre and provides a potential area for investment.
3.3.8. COAL DEMAND AND FUTURE GROWTH
Coal demand prospects in Malawi are dependent on developments in the industrial, agricultural, and domestic sectors. Currently virtually all coal consumption, 60-80 000 tpa, is in the industrial sector. Almost half is consumed by the cement industry, with textile and food processing industries taking most of the remainder.
Future growth from this sector is likely to be mainly in the area of tea and tobacco estates, where coal is being tested as a substitute for fuelwood. By 2000 coal demand could thus exceed 150 000 tpa. On economic grounds it is almost certain that most of this should be imported from Mozambique. (Southern Africa Coal '97 Conference)
3.3.9. CONTRIBUTION OF COAL TO THE ECONOMIC AND REGIONAL DEVELOMPENT
3.3.9.1. ECONOMIC GROWTH
Malawi adopted an export-oriented growth strategy following independence based on large-scale agriculture and agro-based manufacturing using foreign capital and managerial skills. The economy was relatively open and public sector investment was directed at supporting private and parastatal projects in the productive agricultural sector through the provision of essential infrastructure, utilities and supporting services.
40 Until the mid-1980s when structural adjustment reforms were introduced, parastatals and Dr. Banda's personal holding company, Press Holdings, operated in all key sectors of the economy, often enjoying monopoly positions. Government control and regulation of the private sector was also significant. The country enjoyed a high economic growth rate up until 1979, driven by tobacco and tea exports. GDP growth for the first 15 years of independence averaged 6% per year. Between 1979-82 Malawi's economy went into recession. To get the economy back on track, government believed the small holder agricultural sector needed to grow, management of public resources needed improvement and price and wage controls needed to be relaxed. Further liberalisation of the foreign exchange, an overhaul of the monetary and tax systems, and improved incentives for foreign and local investors were also introduced.
Since the early 1990s, economic reforms aimed at, amongst other things, attracting foreign investment, have been stepped up.
Price controls on all commodities have been eliminated and privatisation of the parastatal sector is well underway.
Malawi's main economic activity today, continues to be in the agricultural sector. The major export crops include tobacco, sugar, groundnuts, rice, tea, coffee and cotton. Other crops include maize (the staple food), sorghum, millet, pulses, root crops and rubber. Both small holder farmers and estates grow these crops. About 37% of GDP come from agriculture. The other major sectors are manufacturing, utilities, construction, transport, distribution and communications, and government services. (South African Development Community, 1997: 4.3)
41 MALAWI: ITUMINOUS COAL DEPOSITS MAP 4.
ZAMBIA
VI INTERNATIONAL BORDERS RAILWAY
SOURCE: MINISTRY OF ENERGY AND MINING OF THE ". REPUBLIC OF MALAWI I To Beira
42 3.4. MOROCCO (MAP 5)
3.4.1. COAL RESOURCES AND QUALITIES
In Morocco, several hard coal and lignite deposits are known, but most are small and poorly explored. The most important deposit and the only producing coalfield, is at Jerada in northeast Morocco.
3.4.1.1. JERADA COALFIELD
The Jerada anthracite deposit extends 25 km east to west and 4 km north to south. Four of the 17 seams are economically workable. Jerada contains at least 25 million tons of economically recoverable reserves accessible to the current operating unit. Another 45 million tons of probable reserves have been delineated elsewhere at Jerada.
The extractable coal seams, known as the A, B, C and F Seams, vary in thickness from 0,4 to 0,9 metres. Geological conditions vary considerably. o The measures.in the north of the field are close to the surface and gently dipping, but become deeper, more faulted and tectonically disturbed to the south. Mining is increasingly concentrated on the latter reserves. o The anthracite has high calorific value, high sulphur and low volatile matter. The ash levels are lower than suggested by recent studies. The anthracite is extremely friable, with 80% of output occurring in fines.
TABLE 3.13. MOROCCO - COAL QUALITIES OF THE JERADA COALFIELD
WASHED RAW Moisture Ash 5.4 20.2 Volatiles 6.7 9.0 Carbon 87.9 9.0 Sulphur 1.6 2.5 Nitrogen 0.8 0.6 Oxygen 2.6 6.5
Gross Calorific value MJ/kg 33.0 31.0
43 3.4.1.2. OTHER COALFIELDS
Other coal deposits have been explored to a much lesser extent, and resource information on them is sketchy. The best hard coal prospects are at Ezzhiliga and Tindouf Draa, and the best lignite deposit is at Meknes-Fes. The likelihood of any of these deposits being exploited in the near future is slight.
3.4.2. PRODUCTION TRENDS
Coal output began at Jerada in 1932. Production came initially from the north field, rising to over 500 000 tpa by the early 1950s. In the late 1950s the first of several new collieries were commissioned in order to increase output. Most output was at that stage consumed by industry, but the increasing proportion of fines being produced led to the decision, taken in the later 1960s, to build a coal-fired power station on the coalfield. The 165 MW plant at Jerada was commissioned in 1972.
In the same year the state-owned Bureau de Recherches et de Participations Minieres bought out remaining French and Belgian interests in the sole coal producer, Charbonnages Nord-Africains, which was subsequently renamed Charbonnages du Maroc (CDM).
In the late 1970s output from CDM's four operating mines regularly exceeded 700 000 tpa. However, the industry faced a severe problem in that its most recent colliery, Number Five, which had been intended to reach 1 mtpa by 1980, was barely able to produce a quarter of that target. Inadequate preparatory exploration work and problems over the funding and choice of equipment were mainly to blame. With the other three operating mines facing exhaustion in the 1980s the poor performance of the Number Five colliery was a serious matter.
CDM consequently prepared plans in 1981 for the modernisation and redevelopment of the Number Five colliery and the construction of a new mine, Number Six. Each was to produce 1,0 mtpa by the end of the 1980s. However, the scheme was regarded as too ambitious by the World Bank, from whom funding had been sought. The Bank argued for modernisation of the Number Five colliery only, and then only providing that geological surveys and equipment trials proved successful. CDM agreed to this strategy, and detailed feasibility studies were undertaken in the early to mid-1980s. Reserves of 25 million tons were proven and mechanisation tests in the thin and variably dipping seams proved successful.
44 A revised mine plan incorporating a new 6,8 metre diameter shaft and greatly simplified face and roadway layout was prepared, to achieve full mechanisation of production and transport. A new fines washery was included in the scheme to cope with the increasing ash content of the coal: 40- 45% was the average in the mid-1980s compared with a maximum power plant specification of 32%.
3.4.3. FUTURE COAL PROSPECTS
Prospects for the expansion of coal production in Morocco are slim. Coal seams are thin and mining conditions are very difficult and it is doubtful that the production level of 1,0 mtpa will be sustained.
Despite Morocco's drive towards a free market economy, the government is not ignoring the socio-economic significance of the coal mining industry. Coal produced at the Jerada Mine is more expensive than imported coal, however, the mine employs 6 000 people directly and supports 50 000 in total.
3.4.4. COAL-FIRED POWER GENERATION
Three power stations operate on imported steam coal.
Mohammedia's units 3 and 4 started burning coal in 1986, while the Roches Noires power station at Casablanca was re-converted to coal in 1982. Respective capacity is 300 and 120 MW.
The Jorf Lasfar coal-fired plant of four and six sets of 330 MW each was commissioned in 1993 and was increased to six sets in 1998. (IEA Coal Research, 1991: 56/57)
Coal imports of steam coal rose from 29 000 tpa in 1980 to 1,704 mtpa in 1995. Power stations consumed about 60% of imports and cement plants 35% in 1995. Total steam coal imports by 2000 could reach 4,0 mtpa.
45 3.4.5. CONTRIBUTION OF COAL TO THE ECONOMIC AND REGIONAL DEVELOMPENT
3.4.5.1. ECONOMIC GROWTH
Drought, the old enemy, returned to Morocco in 1995, reducing agricultural production for both export and the domestic market. Consequently progress along the path of economic liberalisation and structural adjustment slowed, GDP registering a 5% downturn compared with the 11,5% growth in 1994.
According to the World Bank, macro-economic stabilisation is an urgent priority. Without it, Morocco risks being marginalised in the competition for world markets. Economic diversification to reduce dependence on agriculture, strong growth to reduce unemployment and restructuring of the education system are key goals identified by the Bank.
3.4.5.2. MINING'S CONTRIBUTION TO THE ECONOMY
Mining is Morocco's largest foreign exchange earner and usually accounts for 3,5% of the gross domestic product. It accounts for more than 9% of GDP if downstream products of the minerals industry are included.
On a more positive note, Morocco's earnings from the minerals sector remain substantial with phosphates accounting for 30% of total exports and 5% of GDP.
Coal production is very expensive, well above the cost of importing steam coal for power generation and the cement industry. The coal industry is said to employ 6 000 people and the government only keeps this industry going because it is an important employment industry, supporting about 50 000 people.
The coal industry is therefore not expected to expand over the long term.
46 TABLE 3.14. COAL DEMAND / PRODUCTION AN DTRA DE
COUNTRY: MOROCCO CO 0) 0) r 0) 0) 0) in N C.) 0) Nr .-- a) 0) 0) a) 0) 0) e 0) 0) 03 CD 0) cn CD .. 0) co 0) co MILLION TONS - 2000 ESTIMATE
Demand O CD C) 6 CD CD CD C3 cp cP Orr Ci 8 0 0 CD 0 C) 000 CD (.. op CD 0 7.:: Coking Coal 6 CD CD O Cl CD Ul ei cn 0 N QD C3 OD f c) N P CV N P e CO r- L <- e- 04 e- (Oh 03 e-: f Ul ir l '' ■ ■
Steam Coal --.'" ep 0 N U) CD el t, cp al P C4 N N T.. el P. e en ` <- u:! 04 w- w— e-. e- OR C) et 0) l
Total _ I
Production 6 UD 0 6 6 CO C3 UD cp 6 0 (D CD 6 QD 6 t() Ul Ul c) up 6 CO 6 OD 6 CD Ul Ul f 0 f 0 ■ ■ . Steam Coal 6 U3 0 6 6 UD CD 0 Ul U) (O CD 6 QD CD 6 1,0 CO 6 6 6 f CD t CD CO III ■ Total ■ 0.55 0.601
Trade
47 Imports , 000 Coking Coal Imports 6 CD CD 6 CD CD 6 CD 6 CD C3 6 CD 6 0 0 6 000 000 .0- 6 ..— 03 6 CD 000 6 CD C3 000 01 U)
United States • cp CD C4 cp CR c) CR ci 0 c) cp CD 0 CR 6 CD CD st. 6 6 ..— 00 6 6 CD 0 Total OECD CI Ul 6 CD CD 6 C3 CD 6 6 CD CD 6 6 6 CD CD 0 0 et 6 6 P. OD 6 Ci c) CD VI U)
I Total CD
Steam Coal Imports 6 CD CD 6 CD CD 6 6 0 CD 6 6 CD 0 cP CD CD CD 0 CD 0 6 0 6 6 .I3 0 France e- 6 0 CD 6 CD CD 6 CD CD 6 0 N 6 C) r 6 C3 N 6 CI N 6 6 8
Netherlands 6 CD 0 C) Ul o.oA 0 .0' 1 6 0 CD 6 ci Co 0 6 CD CD CD CD 6 0 CD 6 0 6 P 6 N cn United Kingdom 00 0.281 0.001 <- ,- CD CD 6 CD 03 %.— r e- CD 6 (D 01 6 CO 03 6 g United States 6 UD U3 0. 741 0.53 1. 10 r v- <-: e- P r C) 6 6 CD C4 CD v— CD ci UD e- CD LO Ul <- 6 UD 6 A CD CV GO QD 6 cn Ul Tota l OECD 6 cp N 0 CI 0 01 N 6 CV CD N 6 o 8 6 CD CI 6 0 0 C> OD Colom bia 0.031 0.20 0. 32 6 ep N 6 6 el N CV CD 6 CD CO 6 6 6 6 0 0
Total C/S America a cp CI CD VI 0.20 0.321 0.321 0 60' r N CV 6 CD O 0 ci CD CD CD el SouthA frica r 2.w) CD CD C3 N CD C) ci 01 UD 6 <- CD 6 gl' 6 0 CD 6 0 6 8 6 cp CD CD CD a 0 Total Africa/M.East ep el CD <- N CR pi ..- CD 6 6 QD el CD C3 g Ul cp P. et 6 <- C) CD co U3 6 I co OD U) :
— Total ei e) 0 <- 6 CIS c5 CD U) N N C) C3 el e- CD 0 ' CD P. CO 6 P. e- e- 8 r- C) e- C3 c::! et
:
I Total Coal Irrjports
A10 A10 1(
6 C3 0 CD 6 8 6 CD C) CD cS CD CD CD 6 CD 6 6 6 w 6 8 6 CD CD CD . O. O 2 X 0.0(41
SOURCE: World Coal Trade Statistics (WEFA ENERGY) MOROCCO: ITUMINTOUS COAL DEPORTS MAP 5.
NIEDITERRANEAti SEA
11E.Y INTERNATIONAL BORDERS 0 RAILWAY
48 3.5. MOZAMBIQUE (MAP 6)
3.5.1. COAL RESOURCES AND QUALITIES
Mozambique holds some of the most promising coal resources of Africa. However, apart from the Moatize Coalfield, exploration is very limited. Estimates of total in-situ resources thus vary markedly, with figures of up to 14,0 billion tons being quoted.
The deposits are bituminous and were formed in Palaeozoic times: they belong to the Karoo formation as elsewhere in Southern Africa. The main deposit is in the Zambezi basin and represents an eastward continuation of the Zimbabwean and Zambian resources. The most important Mozambican fields in this basin are the Moatize (Tete) and Msambansovu.
Away from the Zambezi basin there are deposits to the north, at Rule, and south, at Chiomo.
3.5.1.1. MOATIZE COALFIELD
The Moatize Coalfield is part of the Moatize-Minjora Basin that fills a large graben covering an area of about 300 kilometers squared and containing conglomerate, sandstone, shale, siltstone and coal seams of the Palaeocene Karoo System. In the Tete region, measured reserves in the Moatize Coalfield are estimated at 2 000 million tons.
Proven economically recoverable reserves are estimated at about 200 million tons, much of it accessible by opencast mining.
The geological structure of the coal deposit is dominated by a series of high angle normal faults, which divide the Moatize Basin into several areas. A total of eleven coal seams have been discovered in the Moatize Coalfield, but only 6 are of any economic value. These coal seams dip at an averaging of 15°, varying from 2 to 14 metres in thickness. The Chipanga seam is the most important seam.
The quality of the coal is good, containing little sulphur, low to medium volatile matter, and with a calorific value of 28,5 MJ/kg. The swelling index of the coal, at around 7 - 8, indicates considerable coking potential.
49 The coal seams consist of layers of bright coal - mainly vitrain - alternating with dull detrital coal, carboargillites, carbonaceous argillites and argillites. The vitrain rich beds are the prime part of the coal, owing to low ash content. The Chipanga Seam, considered to be the principal coal seam in the Moatize area, is of consistent structure and thickness and has a base layer approximately 5 metres thick consisting solely of bright coal.
TABLE 3.15. MOAT= COALFIELD - COAL SEAM THICKNESS
SEAM NUMBER SEAM NAME AVERAGE THICKNESS (IN METRES) 6 Andre 2.00 5 Grande Falesia 12.00 4 Intermedia 8.00 3 Bananieras 27.00 2 Chipanga 30.00 1 Souza Pinto 14.00
SOUZA PINTO SEA
This is the bottom seam of the sequence and has an average thickness of 33 metres. The seam is covered with an average thickness of 53 metres of thin-bedded micaceous sandstones and shales.
CHIPANGA SEAM
The Chipanga Seam comes next in the sequence, and is the most important economically as it contains significant amounts of coking coal. The total seam amounts to 35 metres, consisting of 21 metres of coal and 14 metres of interbedded shale. The Chipanga Seam is overlain by a sequence consisting of shale, fine and coarse-grained sandstone, micaceous sandstone and black shale.
3.5.2. ilflOATIZE PROJECT
3.5.2.1. LOCAL GEOLOGY
The main mining area, referred to as Section 2A, has an area of 5,08 km 2 and is situated to the southeast of the Chipanga Mining Camp, from which it is separated by a structural high that interrupts the continuity of the sedimentary belt. The Section comprises of a northwest, southeast trending rectangle some 4 500 metres long and 11 500 metres wide.
50 o The Souza Pinto, Chipanga, Bananieras and Intermedia Seams are present within Section 2A, but the last two seams only occur in the most tectonically depressed blocks which have been preserved from erosion. o The Intermedia Seam has no economic potential and the Bananieras Seam within Section 2A has been thermally altered by a dolerite intrusion, meaning that only the Souza Pinto and Chipanga seams are relevant for calculation of coal reserves.
3.5.2.2. TECTONICS - DIVISION OF SECTION INTO BLOCKS
Section 2A has the structure of an assymetric syncline with axis trending NW-SE and plunges about 12 degrees SE. The dip on the limbs of the structure varies from 11 degrees to 25 degrees. Large normal faults striking NW-SE place the sedimentary sequences and basic/ultrabasic rocks of the basement side by side. The throw on the faults frequently exceeds 80 metres, dividing the deposit into four large blocks. The large blocks of Section 2A are cut by faults, trending NW-SE that divide these blocks into 23 sub-blocks.
TABLE 3.16. MOAT= PROJECT IN—SITU RESERVE CALCULATION
SEAM AREA SEAM THICKNESS IN-SITU (ha) (METRES) RESERVES (M TONS)
Section 2A Chipanga 586 29.21 273.70 Outside the Chipanga 316 28.39 143.44 dolerite sill
TOTAL IN-SITU RESERVES 417.14
3.5.2.3. PROJECT CONCEPT
Approximately 80 million tons of the identified coal resource within the Moatize Licence Area have been identified as suitable for opencast mining by Ralcone Pty Ltd in a report dated January 1996. The target for mining is the Chipanga Seam, which averages 28 metres in thickness throughout the Licence Area, and is expected to produce high grade coking coal and thermal coal in a ratio of 75% coking coal to 25% thermal coal.
51 The coking coal, which is considered to be of similar quality to middle volatile Australian hard coking coal, is expected to be acceptable to the steel industries of India, Brazil and Europe.
The thermal coal is of lower quality, but may be attractive to power companies in India and South East Asia.
The Resource Equities Group is considering the development of the Moatize Coal Project in two stages to allow for gradual penetration of the target markets and for the rehabilitation of transport infrastructure required to support a large scale mining operation.
3.5.2.4. INITIAL DEVELOPMENT TO 2,0 ilfITPA
A preliminary financial analysis undertaken by the Resource Equities Group demonstrated the viability of mining 2,0 mtpa of coal for a period of at least twenty years, subject to further studies to confirm the ability of the Zambezi River to support barge transportation at that production level. (Austral's technical consultants have since reported that it is probable the Zambezi River can be used to barge 2,0 mtpa of coal after limited dredging and assuming controlled water releases from the upstream Cahorra Basa dam).
The results of the financial analysis were sufficiently encouraging to justify MCH committing to a Bankable Feasibility Study, being conducted in 1997 and 1998. Subject to its successful completion and the issue of a Mining Licence, the first stage of the Moatize Project could be developed within a further period of approximately twelve months (end of 1999).
The proposed mining operation will probably be undertaken by contractors using medium scale excavators and trucks for overburden removal, coal mining and haulage. It is proposed to selectively remove the intra seam waste during mining to reduce the tonnage of coal processed through the washing plant.
Run of mine coal will be trucked to the washing plant located at the mine site.
Clean coal will be transported by truck approximately 22 km from the wash plant to a stockpile and barging facility to be constructed on the northern bank of the Zambezi near the town of Tete.
52 o The coal will be loaded onto barges of 3 000 dwt for the 530 km journey down the Zambezi and Chinde Rivers to a floating shiploading facility to be anchored offshore from the coastal port of Chinde. o The offshore coal receival, storage and shiploading facility would be capable of loading Panamax bulk carriers at a rate of 20 000 - 30 000 dwt per day and would be designed for year round shiploading operations. It is proposed that specialist contractors will undertake barging and shiploading.
3.5.2.5. SHIPPING
The cost of a purpose built harbour for Cape or Panamax size ships at Beira for the purpose of exporting 3,2 million tons of coking coal a year is prohibitive. This can be seen from the previous studies undertaken to date. The possibility of sharing the harbour with the iron project makes a positive difference to the cost of infrastructure compared to previous studies.
A study undertaken by ESG and DHV of Holland into the development of a combi-terminal capable of handling 3,8 million tons of iron ore and 3,2 million tons of coking coal has been done on a conceptual basis. In addition, exporters of chemical and metal products have shown interest in the building of a new general purpose key at the terminal.
The development cost of the harbour including land, sea and infrastructure arrangements around the finger type terminal is US$234 million (Dec 1997 terms). It is proposed that the Moatize coal project carry a 15% equity in the terminal project (the base case scenario). This means a capital cost for coal export of US$28 million to the project. As a result of the progress made in raising project and donor finance for the terminal as part of the iron project, this scenario to be realistic. This makes a huge difference to the project economics, largely as the infrastructure burden studied by CVRD and Gencor in 1992 which made the project unattractive, has been dealt with. (Austral Coal & Mozambique Coal Holdings PTY LTD & Investment Option)
3.5.3. COAL PRODUCTION TRENDS AND PROSPECTS
Small scale mining in the Moatize area during the period 1930 - 1948 produced an average of 15 000 tpa of coal. With the establishment of the coal company, Companhia Carbonifera de Mocambique (CCM) in 1948, a systematic surveying and drilling programme was instituted in
53 areas targeted for expansion of the existing Chipanga underground coal mines. In 1964, 22 holes were drilled in Section 2A.
In August 1977, a joint venture between Mozambique, Montan and Consulting GmbH/Rheinbraun presented an interim report to CCM on the possibilities of mining and preparing the coking coals of the Moatize Deposit.
Following the establishment of CARBOMOC, which succeeded CCM in 1978, German company GFE-Halle (Geologische Forschung and Exploration Halle) was placed in charge of Moatize coal exploration under a bilateral agreement concluded between the Governments of Mozambique and the German Democratic Republic.
In June 1985, Austromineral GmbH presented a report to CARBOMOC on a Technological Concept for the Development of New Underground Mines at Moatize.
In the period September 1990 to August 1991, a consortium comprising South African Company, Trans-Natal Coal Corporation (Trans-Natal Coal) and the Brazilian Companhia Vale do Rio Doce (CVRD) completed a detailed pre-feasibility study for commencement of large scale coal mining operations at Moatize.
If the above project goes ahead a total 2,00 mtpa could be exported from the field by 2000. (Austral Coal & Mozambique Coal Holdings PTY LTD & Investment Option)
3.5.4. COAL QUALITIES
Ralph Morris and Associates of South Africa analysed previous metallurgical reports on the Moatize Project and recommended the following target specifications for the Moatize Project.
54 TABLE 3.17. COKING AND STEAM COAL QUALITIES — CHIPANGA SEAM
COKING COAL STEAM COAL AIR DRIED BASIS
Ash % 9.00 16.00 Total Moisture % 10.00 Volatile Matter % 26.40 22.22 Fixed Carbon % 61.80 Total Sulphur % 0.7 - 0.9 0.7 - 0.9 Calorific Value kcal/kg air dried 7 000 kcal/kg as received 6 300 Hardgrove Index 90
Dilatometric Index G 1.4 - 1.09 DDPM Fluidity 500 - 800 Average Reflexive Power of Vitrinite 1.16 - 1.31 Composition Balance Index - CBI 0.6 - 1.5 Strenght Index 3.0 - 6.5
3.5.5. CONTRIBUTION OF COAL TO THE ECONOMIC AND REGIONAL DEVELOPMENT
3.5.5.1. ECONOMIC GROWTH
The perceptions of Mozambique as a country bought to its knees by years of war, drought and economic and social dislocation are no longer valid. Reconstruction of the national infrastructure is underway and Mozambique is an attractive location for commercial activity. It's strategic location, with important transport links to the Southern African region, combined with an excellent climate for agriculture, a diverse and rich natural resource base and relatively low-cost factors of production, gives Mozambique a comparative advantage in a number of economic sectors.
The Mozambican government is committed to radical reform of the economy. When Frelimo came to power at independence in 1975, the party inherited a country with low levels of skilled professionals, administrators and managers. The new government adopted a strategy of centralised control of the economy that by the early 1980s had become unworkable. Economic mis-management combined with intensifying warfare with Renamo rebels and a severe drought caused the economy to collapse.
During 1986, a decisive shift took place within the government and past strategies and ideologies were abandoned in favour of a more pragmatic approach. A greater emphasis was placed on the market as the main mechanism for resource allocation and the role of the private sector as the central player in economic decision making was recognised. Government took on the role of creating the optimum enabling environment for rational and efficient economic development. This
55 led to the implementation in 1987 of the Economic Rehabilitation Programme (PRE). The chief aims of the PRE are:
To restore macro-economic balances.
To free constraints on market activity and price signals.
To restructure and privatise parastatal enterprises.
To foster private sector development, and
To encourage the expansion of efficient production in agricultural and. industrial sectors.
Of the 11 main export products, seven are agro-industry products, namely, cashew nuts, cotton, sugar, tea, citrus, cashew oil and copra. In 1993, the value of these exports totalled 33% of the total value of exports. In contrast the fishing industry (prawns and lobsters) amounted to 44% of total imports in the same year.
Mozambique's enormous natural resources could see dynamic sectors of agriculture, mining, fishing and tourism emerge.
The exploitation of the country's resources has experienced setbacks, but the situation has changed for the better in recent years and much-needed economic reforms have been introduced. (South African Development Community, 1997: 6.4)
3.5.5.2. MINING'S CONTRIBUTION TO THE ECONOMY
Mozambique is rich in mineral resources including gold, marble, heavy minerals from coastal sands, coal, pegmatite, iron ores, diatomite, bentonite, tantalite, graphite, precious and semi- precious stones, bauxite, granite, phosphates and clays.
Exploitation of Mozambique's untapped mineral resources and related industrial processing is one of the sectors earmarked for development by private enterprise. Over the past two years there has been an increase in private sector interest in the mining sector.
56 Mozambique and South African interests have together been studying the development of the natural gasfields at Pande in the Inhambane province, with a view to supplying local demand and exporting to South Africa and other markets. An agreement has been reached with the American firm Enron and activities commenced in 1997.
Commercial activity around the large and high-quality Moatize Coalfields in the Tete province is also under consideration and the coalfields the scope to expand to nine million tons per year. If this project gets off the ground, it could become a good earner of foreign currency over the long term. (South African Development Community, 1997: 6.8)
57 MOZAMBIQUE: ITUMINOUS COAL DEPOSITS MAP 6.
Zambeze River Barge Loading Site Moatize Coalfield
*Msanbansovu MOZAMBIQUE • .1.Tete
Proposed Offshore Shiploading Site
Proposed Beira Coal Terminal INMAN OCEAN
SOUTH AFRICA
KEY INTERNATIONAL BORDERS Li RAILWAY
58 3.6. NIGER
3.6.1. COAL RESOURCES AND QUALITIES
Information on Niger's coal deposits is limited. Proven economically recoverable reserves total 70 million tons of bituminous coal. However, total in-situ resources probably exceed 1 500 million tons. The main deposits are at Anou-Araren and Solomi.
Anou-Araren holds some 6 million tons of economically recoverable reserves. The coal has a low calorific value of 15 MJ/kg and high ash content of up to 50%. However, sulphur content is low at less than 1 %.
A more economic seam at Anou-Araren is being sought and a washing plant considered.
Much better coal occurs at Solomi; this was only discovered in 1982. Some 64 million tons are estimated as economically recoverable by opencast mining. Calorific value is good at 30 MJ/kg and ash content is under 14%.
3.6.2. COAL PRODUCTION AND DElifiAND PROSPECTS
Coal production in Niger began in 1980 with the opening of a 200 000 tpa capacity opencast mine at Anou-Araren. The mine is operated by the Societe Nigerienne de Charbon (Sonichar). The output is used at a mine mouth power plant of 38 MW, based on fluidised bed combustion technology, which supplies power to the nearby uranium mines. Output rose steadily to 130 000 tpa in 1983, and reached 179 000 tpa by 1995.
3.6.3. LONG-TERilfi PROSPECTS
Niger's coal industry is always likely to remain firmly wedded to the uranium industry and its power requirements. The market for uranium is likely to remain weak for the foreseeable future, and the prospects for coal are thus not good. Output of 150 000-170 000 tpa at most may be considered as probable for at least the next decade.
Plans for alternative use of coal resources have been proposed but remain speculative. Schemes for further small-scale power generation plants were put forward, the distance of the bituminous coal deposits from most major markets make the viability of the schemes questionable.
59 Use of either hard coal or brown coal resources in the household sector to replace fuelwood has also been suggested. Steps towards this substitution have been taken but progress in this sector has been slow.
The distance of Niger's coal deposits from markets in other parts of Africa, combined with limited infrastructure, make exports unlikely. (IEA Coal Research, 1991: 62)
60 3.7. NIGERIA (filiAP 7)
3.7.1. COAL RESOURCES
Coal is widely distributed in Nigeria and occurrence has been reported in more than 13 States of the Federation. It was first discovered in Nigeria in 1909 at streams along the Udi escarpment in Enugu State, but actual mining started in 1916 at the foot of Udi Hill along the Enugu escarpment. From the onset, annual coal production maintained a historical upward trend, rising from 24 511 tons in 1916 to 905 397 tons in 1959. Thereafter, production fell to 730 183 tons in 1965/66 and dropped sharply to virtually zero during the civil war (1967 to 1970).
After the civil war production picked up to 323 001 tons in 1973, but thereafter declined steadily to about 82 000 tons in 1989, which prompted the Federal Government intervention to inject more competent management teams and initiate a Commercialisation Programme for the Coal Industry in 1990.
o Initially, the Coal Industry was a unit of the then Marine Department and coal produced was supplied to the British Navy for their steamboats.
o In 1950, by the Ordinance No. 29 the Nigerian Coal Corporation (NCC) was established. The Corporation, then managed by the British, was charged with the responsibility to prospect, mine, treat and market coal and coal products in Nigeria.
3.7.2. ENERGY SOURCES AND PROSPECTS IN NIGERIA
Nigeria is rich in conventional energy resources, which includes oil, natural gas and coal. Virtually all of the country's energy requirements are being met from three sources; gas and oil accounting for about 38% and 30% respectively, while fuelwood accounts for another 24% and coal only 4%.
The unavailability of coal as a result of the civil war, the discovery of petroleum and the commercial production and supply of petroleum products in the late 1960s and early 1970s, forced coal users to switch to the more readily available kerosene and fuel oil and later LPG and natural gas.
The annual contribution of coal to the national energy mix therefore continued to decline from about 50% in the 1960s to about 4% in the late 1980s.
61 3.7.3. COAL RESOURCES AND RESERVES
Nigeria's coal resources are estimated at over 2,75 billion tons. Proven recoverable reserves are small by comparison with oil and gas reserves.
The most recent estimate shows the indicated and inferred in-situ coal reserves at 639 and 905 million tons respectively. Most of the coal is sub-bituminous, with lignite amounting to 250 million tons. The country remains poorly explored, and estimates of in-situ resources could increase further if these reserves were properly investigated.
The coal deposits were formed in Mesozoic and Cainozoic times.
o Mesozoic deposits are mainly sub-bituminous and occur in a belt along the Enugu escarpment, with deposits at Lafla and Bauchi further north.
o All Cainozoic resources are lignite, and occur in the south Niger valley, notably around the Enugu escarpment, incorporating a coal-bearing area of some 240 km long by 25 km wide. Fields within it include Enugu, Okaba, Ogboyoga and Owukpa. (IEA Coal Research, 1991: 63)
3.7.4. COALFIELDS
Of all the Nigerian coals discovered so far only Lafia-Obi coal appears to be bituminous and cokeable. It is characterised by high volatiles, medium ash, medium to high sulphur, high free swelling index and high maximum fluidity.
The rest of the steam coals, ranging from sub-bituminous to bituminous, characterised by low sulphur, low ash, high volatile and medium and high calorific values. Nigeria's coal has great potential, not only for export because of its low sulphur, low ash and high calorific value content, but also for domestic industrial utilisation in the iron and steel, cement, bricks, glass, tyres, batteries, carbon electrodes, building materials, electricity and chemical industries, as well as for domestic households and smokeless briquettes.
62 TABLE 3.18. NIGERIAN COAL RESERVES IN MILLION TONS
COAL FIELD LOCATION STATE INDICATED INFERRED NOTES RESERVES RESERVES PROVEN
ENUGU REGION ENUGU 54 200 Occurs in Manu formation lower coal measures
EZIMO ENUGU 56 60 Located 64 km north of Enugu
OWUKPA BENUE 57 75 Main Seam outcrops for a distance of 6.4 km.
OKABA KOGI 73 250 Seam of 2-3 metres thick
OGBYOYOGA KOGI 107 320 Seams of 0.75-2.23 metres
INYI ENUGU 20 30
LAFIA-OBI PLATEAU 22 156 Mostly coking coal
GOMBE-DOHO-KURUMU BAUCHI 1 360
TOTAL RESERVES 389 2 451
The Enugu Coalfield is the best documented, having been in production for some 75 years. There are five seams of which Number Three is the best, at a thickness of 1,2 to 1,8 metres. The reserves are shallow, fairly level, and mildly faulted. Coal quality is reasonable with low sulphur, low to medium ash, and a high gross calorific value of some 33 MJ/kg. Indicated and inferred reserves are 54 and 200 million tons respectively.
The Okaba and Owukpa Coalfields have reasonable seam thickness and are fairly readily accessible. Qualities are fairly similar to those of the Enugu field.
The Ogboyoga Coalfield, which has the most extensive reserves, appears to differ most from the Enugu field in its high sulphur levels of 2,6%.
Information on Lafla Obi Coalfield is limited. Estimated reserves were recently put at 128 million tons. The coal has been reported as coking coal, but with high ash and sulphur and a
63 gross calorific value of under 28 MJ/kg. The swelling index is 6, but the feasibility of using it as coking coal is questionable, given the overall quality of the coal. (IEA Coal Research, 1991: 64)
3.7.5. COAL QUALITIES
TABLE 3.19. NIGERIAN COAL QUALITIES
COALFIELDS QUALITY PARAMETERS ENUGU INYI OWUKPA OKABA LAFLA RAW WASHED
Moisture (%) 8.50 9.60 Ash (% dry) 9.70 6.50 8.80 11.00 28.60 14.70 Volatiles (%) 40.60 51.90 43.90 48.40 31.70 Gross CV MJ/kg daf 33.00 24.30 31.20 30.30 27.50 33.00 Carbon (% dry) 79.30 73.50 78.00 68.00 87.60 Hydrogen (% dry) 5.10 4.60 6.00 4.50 Sulphur (% dry) 0.68 1.46 0.46 0.69 6.80 3.50 Sulphate Sulphur(% dry) 0.01 0.05 0.02 0.06 Pyrite Sulphur (% dry) 0.05 0.75 0.02 6.52 Organic Sulphur (% dry) 0.62 0.67 0.43 0.29 Swelling No (FSI) 1 0 0 1/2 6 9 Oil Test Softening °C 356 357 357 380 389 375 Reconsol Point ° C 477 462 483 441 426 Softening Range 121 87 126 148 149 Contraction (%) 27 2 15 18 17 30 Dilation (%) 0 0 0 12 190 Gray-King Coke Type G4 G9 Maximum Fluidity (ddpm) 3 23 28 Mean max. Reflectance(%) 0.45 0.45 0.45 0.99 1.00 Vitrinite (%) 51.40 79.70 98.00 Exinite (%) 8.40 0.00 0.00 Inertinite (%) 30.20 19.90 2.00
3.7.6. COAL PRODUCTION AND DEMAND TRENDS
Coal production came directly under the Government until 1951, when the Nigerian Coal Corporation was vested with full powers of operation and control. The Corporation has remained a public sector body and the monopoly producer to the present day.
64 The Nigerian coal industry has made several attempts to increase its coal production and exports, with very little success. Recent plans to boost production and use of coal must be regarded with caution, given this background and the continuing economic problems of Nigeria.
In 1976 Kopex of Poland undertook the mechanisation of Onyeama and Okpara, the two underground longwall mines in Enugu, and an opencast mine at Okaba. When completed in 1979 the combined production potential of the three mines was to have been 1,5 mtpa. In practice the mechanisation attempt was a failure as annual production from these expansions never exceeded 110 000 tpa.
A further increase in production was nevertheless planned under the country's Fourth Plan (1981-85). It was envisaged that the Enugu mines would produce 2,5 million tons and Okaba 0,5 million tons by 1985. Plans were also drawn up to revive production at Owukpa opencast mine, and to open new mines at Ogboyoga, Lafla, and Onitsha. In all, capacity in excess of 5,0 million tons was envisaged and should have been producing by the end of the 1990's.
None of the new mine schemes has proceeded, with the exception of Owukpa. Moreover, output from the existing mines has been very much lower than forecast. Far from increasing, coal output fell from 193 000 tpa in 1980 to 110 000 tpa in 1987.
In 1987 a plan to increase output to 3 mtpa by 1990 was drawn up but never implemented.
In 1989 it was reported that funds were being released for the mechanisation of Onyeama and Okpara and the purchase of equipment for Okaba and Owukpa.
In mid 1990 a new scheme for the redevelopment of Onyeama was announced. A joint venture agreement was signed between the Nigerian Coal Corporation and Carbomin, an UK- based consortium made up of Giering Rose and IFL Investment Finance. The scheme envisaged production of 100 000 tpa by the end of 1990, rising to 300 000 tpa in 1991 and 500 000 tpa by 1995, mainly for export. These expansions did not materialise. (IEA Coal Research, 1991: 65)
In 1993 a joint venture was formed between the Nigerian Government and a South African mining company (Terra Exploration) and some dormant coal mines were reopened, producing
65 about 30 000 tons of raw coal in 1993. Production was expected to increase to 500 000 tpa by 1995, but this has not been achieved. o Latest available information indicates that Nigeria produced 140 000 tons of coal in 1995.
3.7.7. COAL EXPORTS FROM NIGERIA
Exports, which have been mooted on occasions as a market for Nigeria's coal, will remain an extremely limited possibility in the next decade for anything other than small-scale shipments to neighbouring countries.
Exports from these mines is erratic mainly due to transport difficulties and the limiting operating capacity of Port Harcourt, which can only operate vessels of maximum of 10 000 dwt and port handling tonnage of 50 000 tpa. The Nigerian Coal Corporation (NCC) is trying to use Onne as a deep-water port that could load vessels with a capacity of 40 000 dwt.
In 1986 Nigeria exported a total of 30 000 tons of steam coal to Italy, in an attempt to enter the seaborne steam coal market, but were unable to maintain exports as facilities at Port Harcourt needed refurbishment and the rail wagons and locomotives needed extensive maintenance. Further tonnages were exported up to 1993 and in 1996, only 3 000 tons of coal were exported to Italy.
The National Coal Supply Corporation of Israel has indicated that they would be interested in importing coal from Nigeria, provided that they could prove that they were a reliable supplier.
3.7.8. CONTRIBUTION OF COAL TO THE ECONOMIC AND REGIONAL DEVELOPMENT
3.7.8.1. ECONOMIC GROWTH
Development of Nigeria's considerable economic potential has been severely hampered by the continuation of its nationwide political crisis, the resulting uncertainty about future direction of economic policy and the persistence of widespread insecurity and corruption. In these circumstances, the only area of significant new investment lies in the hydrocarbons industry, and particularly, the offshore production.
66 In an effort to stimulate investment in other sectors of the economy, the Military Government in 1995 issued a new decree permitting investors 100% ownership. However, most investors have been reluctant to invest in the absence of greater political stability.
Nigeria is Africa's largest oil producer, ranked tenth in the world. Nigeria accounts for about 35% of the world's production and 10% of OPEC's total production. As a result the hydrocarbon sector remains the mainstay of the economy, accounting for about 35% of GDP. The oil sector accounts for about 96% of the country's total export earnings.
3.7.8.2. MINING'S CONTRIBUTION TO THE ECONOMY
The country's non-fuel mineral resources base of barite, gold, iron ore, lead and zinc could help to diversify the economy. Through the Raw Materials Research and Development Council in 1993, the Government started a vigorous campaign to attract investors to explore and develop in known mineral resources. The ongoing revision of the mining laws and investment codes should provide adequate incentives for investment.
Privatisation of the coal industry, traditionally in the hands of the Nigerian Coal Corporation, has been slow to proceed. Despite problems in the existing mines, and the failure of recent attempts to revive production and exports, there is good long term potential for the industry.
The Raw Materials Research and Development Council continues to advertise a list of reserves of non-metallic industrial minerals, including coal, which are available for development.
67 TABLE 3.20. COAL DEMAND / PRODUCTION AND TRADE
COUNTRY: NIGERIA ,-- a) co co .--- o) co O a) a) O 43) ,-.. a) a) 0.1 a) co c) a) a) 03 a) Nt- c- La a) cr) CD .- a) a) f , -
MILLION TONS 2000 ESTIMATE
Demand ci O ci O O 0 r•-• ci 0 t O 0 co ci ,-- O co O I ci co ci .-- O ci a o ci CNI ..-- ci , , ■ - :t - -
Steam Coal F... 40 c) co B 6 v- o 6 0 Is. ci 0 It.. c; 0 cm cm; o Is 16 .)- o v- ci o ci ■ NI 0; v- er 0 0.08 1--
Production ci o ci o ce) co ci a- ci O CV ci c) co V' T- V' N- ci .4.- 01 ci .- Tr ci v. NI ci ,.- V' 6 .,- Tr -
Steam Coal 46 (6 o el c) co 6 a- Ir. ci co co 44 cz; .ct (0 .i... es1 44- 0; 46 C•1 .ar 6 v- 40; v- .4" c; , Tt 4- To gir
68 tal
Trade
L L o o tt ° ° . o o _ T 6 o o ci 46 0 0 6 0 0 ct o
40 0 0 0; 0 o ci 0 o 4:5 Q. o 0 0
0.00
o o . zo [ 46 40 o 40 c:i o o 6 40 co ci 0 c; 0 VI ci 0 o ci o o ci 0 o c; 0 0 6 o 0
Exports
SOURCE: World Coal Trade Statistics (WEFA ENERGY) NIGERIA: J[TUMINOUS COAL DEPOSITS MAP 7.
Nguru ,OKaura Namoda
Maiduguti
.°=' " NIGERIA
Kaduna
()Jos
*OBaro Lafia-Obi
CAMEROON
Onnel)
Port Harcourt I IAN It OCEAN
KEY INTERNATIONAL BORDERS LI RAILWAY
69 3.8. SWAZILAND (MAP 8)
Swaziland is heavily dependent on South Africa. Land-locked and small, with a population of less than a million, it is a member of the Southern Africa Customs Union. Much of the country's infrastructure and industrial investment is South African in origin.
Infrastructural integration with South Africa applies particularly to the transport and energy sectors. Swaziland railways are dependent on South African rolling stock. The South Africans also carried out the upgrading of much of the railway network in the 1980's.
3.8.1. RESERVES
COAL ZONES
Swaziland contains extensive coal deposits. These lie in a north-south belt in the east of the country. As with most Southern African coal, these deposits were formed in Paleozoic times, but differ from most other deposits due to the large quantity of anthracite found in these seams.
Two major coal zones exist, each with many seams of low volatile coal or anthracite, which dips generally eastwards at 5 to 7 degrees. The coal of the two zones vary markedly in quality, with those of the "Upper Coal Zone" being inferior quality anthracite, whilst those of the "Lower Coal Zone" are moderate to good quality low volatile anthracites. During the 1970's the zones were extensively explored by drilling and a total of 5 exploration shafts were sunk, one in each of the most promising areas.
TABLE 3.21. SWAZILAND COAL RESOURCES
MILLION TONS IN-SITU COAL RESERVES 5 000 MINEABLE IN-SITU RESERVES 1 000 BENEFICIATED RESERVES 550
The coal reserves are cut by numerous dolerite intrusions, which has resulted in burnt coal at and near the contacts and the fields are highly faulted.
70 GEOLOGY OF COAL ZONES
Coal seams occur in the middle stage of the Ecca Series of the Karoo Supergroup and have been deposited unconformable on the Dwyka Series and the Archaean gneiss complex of the Basement.
Dwyka sedimentation consisted of a series of glacial sediments deposited during a glacial retreat. This glaciation had produced deep erosion channels within the Basement. Much of the glacial fill was deposited as outwash gravel fans and sinuous ridges and mounds of ground moraine.
Ecca sedimentation was fluviatile, deltaic, lacustrine and lagoonal. The lakes and lagoons become suitable sites for the establishment of lush forests and swamps, which upon diagenesis became transformed into coal deposits. Some of the vegetative matter became reworked by streams and deposited in interfluvial basins.
The coal measure cyclicity has been postulated as being the result of the sedimentary processes of channel migration and meandering on a slowly subsiding floodplain rather than subsidence controlled by tectonic downwarping of the basin of deposition.
3.8.2. STRUCTURAL GEOLOGY
Coalfields occur in a 15 to 30 km wide, north trending belt of the Middle Ecca Series rocks, outcropping along the eastern borders of Swaziland. This belt, which is considered to be a northern extension to the Kwazulu Natal coalfields, is bounded to the west by Archaean gneisses and to the east by the overlying sediments of the Beaufort Series and the lavas and sediments of the Stormberg Series of the Karoo Super-group.
The coalfields have been subjected to a long history of tectonic activity, such as the formation of the Lebombo Monocline, block faulting with the long axis trending mainly north south and dolerite infection during post-Ecca igneous activity. The dolerites are in the form of dykes and sills that may have been injected into fault zones.
3.8.3. COALFIELD GEOLOGY
The potentially exploitable reserves in the coalfields consist of up to six seams of anthracitic quality coal ranging from 0,5 — 8,0 metres in thickness. The seams occur within a sequence of
71 fine to medium grained sandstones, siltstones and carbonaceous mudstones dipping generally to the east at between 5 to 7 degrees. A structural "high", trending north south is evident in the western section of the coalfield, west of which the bedding has been tilted to the west. From geological cross-sections, it is seen that the coal tends to thin out towards and over this structure, which is thought to be a Basement ridge. Similar structures, although on a smaller scale, are present in other parts of this coalfield. The intrusion of dolerites has in many cases affected coal quality by burning and devolatilisation. The sills, where underlying the coal, have had the most severe effects, devolatilising the coal and making this coal virtually unmineable. Where sills overlie the coal seams the burning influence has been less.
3.8.4. iiiiINEABLE SEARS
In the southern part of the coalfield, the seams are thick and up to 13 seams at various depth and seam thickness occur. The 3 mineable seams are known as the Main seam, the No. 1 and No. 2 top seam.
3.8.5. MINEABLE AREAS
3.8.5.1. IVIPAKA-LUKULA RANCH AREA
In this area the Main seam varies from 1,4 - 8,5 metres in thickness, with an average seam thickness of 3,0 metres, over the entire seam. However, the seam thickness over much of the seam averages 4,8 metres. The roof formation over this seam is mainly made up of course sandstone, while the floor consists of weak shale, which does tend to break-up under heavy mining equipment. The Main seam occurs at a depth of 200 metres.
The No. 1 seam occurs about 17 - 30 metres above the Main seam, at an average thickness of 1,5 metres. The main attribute of this seam is that it occurs in an almost constant seam thickness and with little quality variance. The No. 2 seam is more erratic and thickness varies from 0,2 - 1,4 metres.
72 TABLE 3.22. MPAKA COAL QUALITIES
MAIN NO. 1 NO. 2 SEAM SEAM SEAM CALORIFIC VALUE kcals/kg 7 180 6 690 6 850 MJ/kg 31.00 28.00 28.70 ASH CONTENT % 12.30 16.5-20.1 18.4 VOLATILE MATTER % 11.40 15.0 15.0 CARBON CONTENT % 74.90 65.9 SULPHUR CONTENT % 0.41 INT. MOISTURE CONTENT % 1.40
3.8.5.2. MTINDEKIIVA AREA
In this area a very thick band of shale occurs, with several seams of coal occurring in the shale. These seams are present over a depth of about 420 metres. The Main seam thickness varies from 1,4 to 6,0 metres. The coal seam is high in pyrite.
TABLE 3.23. MTINDEKWA COAL QUALITIES
MAIN SEAM CALORIFIC VALUE kcals/kg 7 115 MJ/kg 29.80 ASH CONTENT 14.20 VOLATILE MATTER 5.90 CARBON CONTENT 79.00
3.8.5.3. MALOMA AREA
In this area the Main seam has an average thickness of 3,0 metres and is good quality anthracite. The No. 1 seam occurs about 30 metres above the Main seam at a thickness of about 1,5 metres.
TABLE 3.24. MALOMA COAL QUALITIES
MAIN SEAM CALORIFIC VALUE kcals/kg 7 050 MJ/kg 29.50 ASH CONTENT 13.67 VOLATILE MATTER 4.41 CARBON CONTENT 80.31 INT. MOISTURE 1.54
73 3.8.5.4. MZIMPOFU RIVER AREA
In this area dolerite intrusions and extensive faulting have adversely affected the coal seams.
TABLE 3.25. MZIMPOFU RIVER COAL QUALITIES
MAIN NO. 1 SEAM SEAM CALORIFIC VALUE kcals/kg 7 000 6 470 MJ/kg 29.30 27.00 ASH CONTENT 14.80 20.80 VOLATILE MATTER 6.30 6.10 CARBON CONTENT 77.40 71.70
3.8.5.5. MHLUME AREA
Dolerite intrusions and extensive faulting have also adversely affected this area. In the early 1980's Shell Coal sunk a prospecting shaft and exploratory drive into this area to determine coal quality and mining conditions. It was determined that, due to excessive faulting and dolerite activity, mining conditions would be difficult and expensive to develop.
TABLE 3.26. MHLUME COAL QUALITIES
MAIN SEAM CALORIFIC VALUE kcals/kg 6 900 MJ/kg 29.00 ASH CONTENT 25.40 VOLATILE MATTER 8.71
3.8.6. SWAZILAND WASHED COAL QUALITIES
Only Maloma has the right quality to supply the European sized coal markets, however, all three areas could be developed to supply middlings to the steel and cement areas.
74 TABLE 3.27. WASHED COAL QUALITIES
MPAKA MHLUME MALOMA
CALORIFIC VALUE (GAD)kcals/kg 6 930 7 160 7 500 MJ/kg 29.00 30.00 31.40 ASH CONTENT % 14.10 13.20 9.10 VOLATILE MATTER % 12.70 8.50 5.70 CARBON CONTENT % 72.00 78.50 83.50 SULPHUR CONTENT % 0.35 0.27 0.60 INT. MOISTURE CONTENT % 1.30 1.10 1.30 ASH FUSION TEMP (DEF) degrees C 1 250 1 400 YIELD % 75.00 84.10 85.00
3.8.7. COAL PRODUCTION
EMASINATI COLLIERY
Coal production started at this mine in 1964. The mine was initially started by Rand Mines, but taken over by Anglo American in 1972. In 1985 the Mpaka mine was taken over by GENCOR, the name was changed to Emaswati Coal (Pty) Limited and is it was managed by Trans-Natal Coal Corporation Limited until closure in July 1992.
After Swaziland gained it's independence in 1968 and especially after the first oil crisis in 1973, development of the coal resources became a high priority. During the late 1970's and early 1980's, much of the coalfield was subject to extensive exploration. At that stage production was increased from around 75 000 tpa in 1968 to around 170 000 tpa by 1990.
MINING METHOD
The mine had a production capacity of 200 000 tpa production, producing about 165 000 tpa sales tons, giving a yield of 83%. Average seam thickness is 2,70 metres. Bord and pillar mining was carried out with drill and blast sections, gathering arm loaders and shuttle cars.
In the early 1990's the mine was modernised to improve production and productivity. The crushing/screening facility was also upgraded during 1990. A total of 352 people were employed.
75 MINE CLOSURE
Underground operations at the Emaswati coal mine near Mpaka in Swaziland ceased at the end of July 1992. Mr. Mike Salamon, Chairman of Emaswati Coal, said at the time that the mine was no longer viable because of cost increases over which the mine had no control. The mine was able to keep its own cost increases down to 12% per year and to increase its productivity through mechanisation. He said that the mine was no longer competitive because of increased railage rates and electricity tariffs increased by the Swaziland Government at the time.
Furthermore, the lifting of trade sanctions against the Republic of South Africa, for the first time, enabled South African producers to compete with Emaswati who sold most of their annual production to Bamburi Cement in Kenya. This resulted in a more competitive market, which placed further pressure on Emaswati's margins.
An additional consideration was the fact that it was necessary to sink a new shaft, which was essential to ensure safe mining practice. The shaft was necessary, as it would serve as a second escape way and provide additional ventilation. The Emaswati Board made numerous representations to all relevant Swazi authorities with the objective of resolving the issue of "increased off-mine costs". These attempts were unsuccessful and as a result the mine was closed down.
At the time of closure, the rnine's reserves at current production levels were adequate to continue mining for about 37 years. Discussions are underway to possibly re-open this mine to supply both the local market and exports. With the increased requirement of this type of product in countries such as Bulgaria, this mine may be re-commissioned.
IVIALONIA ANTHRACITE
Maloma Anthracite is located in Southern Swaziland about 50 km from the South African border of Golela/Lavumisa near the town of Golela.
RESERVES
The site has been well drilled and proven reserves are 19 million sales tons. In the area the Main Seam has an average thickness of 3,0 metres and is good quality anthracite. The No 1 Seam occurs about 30 metres above the Main Seam at a thickness of about 1,5 metres, but is of an
76 inferior quality when compared to the main seam. Production capacity of the mine was planned at 250 000 sales tons per year.
FEASIBILITY STUDY AND ilfilNE CaltiiVIENCEMENT
In 1987 the Danish Companies, Giersing Rose and Superfos Dammon Luxol formed the joint venture CARBONEX, to establish the Maloma Colliery near the town of Maloma to produce 300 000 tpa of high quality anthracite sales tons for sale to European customers. In 1989 this company renewed their special prospecting licence to re-evaluate the anthracite reserves in the Maloma area. The feasibility study for this project was completed in 1989 and was submitted to the commissioner of mines for approval.
On the 14 July 1992, King Mswati III signed an agreement for the development of the Maloma Anthracite Mine with CARBONEX a Danish joint venture company consisting of Giersing Rose and Superfos Dammon. Initial capital expenditure to bring the mine into production was about US$18 million.
Production commenced early in 1993 when the opencast mine was commissioned.
WASHING PLANT
A dense medium plant was commissioned with a Drewboy type drum washer for the coarser fractions and a cyclone for the finer fractions. No spirals were installed for the washing of the very fine product.
Water is piped a distance of 7 km from the Ngwavuina River.
INFRASTRUCTURE
A new rail siding was built for the project by Swaziland Railways at Nsoko, for the handling of block trains. The siding was completed in September 1993. A rail weighbridge was installed for local distribution and sales.
77 SHIPPING
Shipping of sized products is done from the port of Durban, as the BMA is the best terminal for soft loading. The sale of any duff for the export market is done through Maputo as the railage distance is shorter and railfreight rates lower than to Durban.
CHANGE IN OWNERSHIP
A liquidation application was submitted and was due to be heard on Wednesday 6 March 1996. However, Koch Carbon stepped in and purchased a 50% stake in the mine and the Swaziland Government holds the remaining 50% shareholding. The mine exhausted the opencastable reserves and the holding company were unable to complete the rehabilitation of the opencast and open the underground reserves.
The underground reserves have now been opened up and the mine is back on full production.
3.8.8. PROJECTS INVESTIGATED
BAHLUilliE COLLIERY
PROJECT STATUS
This project was undertaken as a joint venture between:
The Swazi Government.
General Mining (GENCOR) of South Africa.
Daewoo of Korea.
In the early 1980's Shell Coal and Daewoo of Korea investigated this area, but Shell then withdrew from the project and GENCOR entered into agreement with Daewoo.
A pre-feasibility study of the Mhlume project was completed by the Gencor Coal Division in April 1985, where the study concept made provision for the preparation of two anthracite products, namely:
78 385 000 tons per year of a sized washed prime product.
292 000 tons per year of a fines unwashed product.
The life of mine was estimated at 30 years at the above production capacity. In 1988 this project was placed on "hold" as the sized market that was expected to develop in South Korea had not materialised and the world anthracite market was in over-supply.
ANTHRACITE QUALITY
It was envisaged to supply a sized anthracite and duff for briquette production, to the South Korean market.
TABLE 3.28. MHLU1E COLLIERY — COAL QUALITIES
SIZED ANTHRACITE QUALITY
SULPHUR - AIR DRY less than 1 VOLATILES AIR DRY 9.5 CALORIFIC VALUE G.A.D. 7 000 kcals/kg ASH - AIR DRY 15.4 SIZE 10 x 80 mm
QUALITY OF ANTHRACITE FINES:
SULPHUR - AIR DRY less than 1 VOLATILES AIR DRY 8.7 CALORIFIC VALUE G.A.D. 5 900 kcal/kg ASH - AIR DRY 25.4 SIZE 0 x 10 mm
SWAZILAND COLLIERY
In 1982 firstly Amcoal and then Shell evaluated the reserves in this area to establish an anthracite mine to produce 850 000 tpa.
RESERVES
In-situ reserves were estimated at 42 million tons, with a total of 20 million tons of recoverable reserves available, giving this mine an estimated life of 24 years.
79
In the Swaziland coalfield area, a major dyke-fault system, traversing this coalfield in a north-south direction, displaces the coal vertically some 20m, with a downthrow to the west. Other dykes parallel to this may have similar displacements, but the lack of borehole data in the vicinity makes this a subject of speculation. Generally dolerite sill systems cut through the coal-bearing horizons in the eastern part of this proposed mining area and displace the coal vertically up to 70 m. Previous investigations by the Anglo American Corporation (AAC) have recognised several sills, with differing degrees of displacement and burnt coal properties.
TABLE 3.29. SWAZILAND COLLIERY COAL QUALITIES
MAIN SEAM
CALORIFIC VALUE kcals/kg 6 800 - 7 250 MJ/kg 28.42 - 30.30 ASH CONTENT 12.00 VOLATILE MATTER 14.00
3.8.9. IAARKETS
LOCAL CONSUMPTION
A total of 30 000 tons of sized product is sold on the local market, mainly to the various sugar estates.
EXPORTS
Up to 1992 when the Emaswati Colliery closed down, the remainder of total production was sold to the Bamburi Cement Works in Kenya.
Up to 1987, anthracite fines were sold to South Korea. In 1987 a total of 29 550 tons was sold into this market. Since that date, Swaziland anthracite is not competitive in the Far East due to the increase in rail and shipping freight rates.
Since the establishment of the Maloma Anthracite mine sized coal has been shipped through Durban to the European housecoal market and the fines are being shipped to the Brazilian Steel Mills, power stations in Bulgaria and industrial markets in the USA.
80 Coal exports dropped to only 46 000 tons in 1993, but have since recovered to 228 000 tons in 1994, 172 000 tons in 1995 and are currently estimated at about 150 000 tons.
3.8.10. LONG-TERM PROSPECTS
In the long-term, with peace returning to Mozambique and the rehabilitation of the Matola Terminal taking place, we could see exports of this lower volatile coal increasing to power stations, steel mills and cement industries worldwide.
The Maloma Anthracite mine has adequate reserves for about 35 years production at present levels. At this stage it is not known if the other reserve areas will be developed.
There are several reasons for the lack of success in developing the coal industry in Swaziland:
Domestic demand is low at about 30 000 tpa.
A mine mouth power station has been proposed by government on several occasions, but never made any progress.
The ease of importing electricity from South Africa has always been used against the scheme.
3.8.11. CONTRIBUTION OF COAL TO THE ECONOMIC AND REGIONAL DEVELOPMENT
3.8.11.1. ECONOMIC GROWTH
Swaziland relies heavily on export oriented industries due to its limited domestic market. Industrialisation has reached a fairly high level and GDP has grown from E102,7 million in 1972 to well in excess of E1,0 billion just over 20 years later. Average annual growth has been around 3,8%, spearheaded by the change in the economic structure, away from a reliance on agriculture to industry-based during the 1980s. Although growth slowed in the early 1990s to around 2,5%, due to worldwide economic recession and a prolonged drought in the southern African region, the outlook up and till 1999 was looking better.
Swaziland is identifying and developing new markets for its export industries and is looking to the new democratic South Africa as one of the areas where export promotion efforts should be concentrated. In 1994 around 58% of Swaziland's export commodities were sold to South Africa.
81 In contrast, South Africa was the source of about 88% of Swaziland's imports. Major export commodities are sugar, unbleached kraft pulp, citrus and asbestos, which have all fetched high prices on world markets since 1995. Manufacturing companies are the largest foreign exchange earners with soft drinks, furniture and refrigerators making up more than half of the total exports.
Overall, Swaziland's economy has shown resilience during recent years of global recession. Supportive policies of the Swaziland government have encouraged the establishment of a growing free market system. The removal of all unnecessary constraints on investment is a top priority issue and the government is engaged in ongoing efforts to improve incentives and to cater for investors needs. GDP rose by 2,5% in 1995 with manufacturing being the greatest contributor to recovery, accounting for more than 75% of the total. Inflation stood at 14,6% in May 1995, due to high food prices and increased education and medical costs. (South African Development Community, 1997: 9.4.)
3.8.11.2. MINING'S CONTRIBUTION TO THE ECONOMY
Swaziland has considerable mineral wealth within its varied and ancient rock structure. Asbestos, coal, diamonds and stone aggregate are major contributors to the country's economy today, while the now dormant iron ore mine in the Ngwenya Mountains is the oldest in the world.
All minerals are controlled by and vested in the King, as Head of State, and held in trust for the nation. The King, in consultation with Libandla, selects a Minerals Committee to advise on issues pertaining to mineral exploration and exploitation. The Commissioner of Mines receives applications for prospecting licences and mining rights, which are passed on to the Minerals Committee for consideration.
Asbestos is the country's main mineral export. It is currently being produced from the Bulembu Asbestos Mine, in the northern region, which has been in operation since 1991. Swaziland's main asbestos markets are the Far and Middle East, Europe and other African countries. Total production declined in 1994 to 26 988 tons compared to 33 862 tons in 1993, but exploration to identify further reserves in the areas is continuing as the present mine is expected to be depleted by 1998.
Substantial reserves of coal are located throughout the lowveld region of Swaziland.
82 o The new Maloma Mine in the Southern region is now fully operational and produces high quality anthracite for export to mainly European markets. A change from opencast to underground mining techniques has further increased productivity.
0 The Mpaka mine has attracted interest from potential investors looking to restart production.
The world market for sized anthracite has shrunk from 10 million tons to 8,5 million tons over the past 10 years. However, this trend is expected to accelerate over the next 5 years as most households in Europe (who consume sized anthracite) switch from anthracite to cleaner heating fuel such as gas and electricity. This fact may limit the expansion of coal exports from Swaziland.
Diamonds are mined at Dokolwako. Production has increased substantially and the industry's performance is expected to improve along with the improvement of the world economy. It has been announced that a diamond-cutting factory may be established in Swaziland to cut South African stones. (South African Development Community, 1997: 9.8.)
83 TABLE 3.30. COAL DER/IAN D / P RODUCTI ON AND TRADE
COUNTRY: SWAZILAND cr, a) a) a) a) a) a) CD .,- cy) r.- a) a) o) CNI ..,-- a) a) 01 ,-. 'Cr MI co 03 a) a) o MILLION TONS ,-- o) a) co CO 2000 ESTIMATE
Demand co co 6 CD ce) 6 0 co 6 0 ce) 6 C 6 0 0 6 CD Ca/ 6 0 CM 6 0 co CD 0 6 6 C•1 6 st
Steam Coal I o o io t r . c; 0 co c:i 0 co ci 0 co cis 0 CI 6 0 CI ci 0 CM c3 0 CNI ci 0 vs . Total 0.03 0.03 11
Production 6 N 6 6 . In Nr 6 CN1 co 6 .- I ,--- Lc) 6 ,- CM 6 .- 0 6 0 In 6 co 6 .-- If) a . 6 .- CD , - - - - -
Steam Coal .1 .1- Lo v• ci t 6 In 6 c; Ni- 6 e- CV ci 0 c; 0 in x•-• W Iff 6 ci a- CO r- . ■ - 0.14 I 84 Total 0.231
Trade
o o - roo o 6 0 ci 0 0 6 0 0 6 0 c) ci 0 c; 0 0 0 0 c:i 0 c; 0 0 ci 0 0 E a O 0.00 e- CM 6 y Cs3 ci ci CM Cl sci N t••• 6 0 CO 6 0 0 ci 0 011 T CM Cal ci ci c; sr- i C4 ci ) - - - - .
Exports
SOURCE: World Coal Trade Statistics (WEFA ENERGY)
SWAZILAND: ITUMENOUS COAL DEPORTS MAP 8.
O O
0 0 KEY 0 INTERNATIONAL BORDERS RAILWAY To Richards Bay
85 3.9. TANZANIA (MAP 9)
3.9.1. COAL RESOURCES AND QUALITIES
In-situ resources are estimated at over 1 800 million tons, a sixth of them being proved.
Economically recoverable resources amount to around 200 million tons. The coal resources represent a continuation of the Mozambican and Malawian Karoo deposits. Formed in Palaeozoic times, they occur primarily in the southwest of the country, in or near the Rift Valley. The deposits occur in deep grabens along a northwest line from Ufipa to Ruvuma.
Ten coalfields are known but only three have been investigated in any detail. These are Songwe Kiwira, Ketewaka-Mchuchuma, and Ngaka.
3.9.1.1. SONGWE KIWIRA COALFIELD
Songwe Kiwira has in-situ reserves of some 35 million tons. The number of coal seams varies throughout the coalfield but only one or two are workable and the structure is extremely complex and uneven. Ash content ranges considerably around the average of 15%, sulphur content is low at around 0,5%, and calorific value is 25-26 MJ/kg.
3.9.1.2. KETEWAKA-IIIICHUCHUMA COALFIELD
Ketewaka-Mchuchuma, in the Ruhuhu field, has proved reserves of 187 million tons. There are two workable seams, one having coking potential. Ash varies from 8% to 23%, sulphur from 0,5% to 1,7%, volatile matter from 23% to 31% and calorific value from 22 to 27 MJ/kg.
3.9.1.3. NGAKA COALFIELD
Ngaka, also in the Ruhuhu field, has proven reserves of 100 million tons. Seven seams are considered workable, two of them over 5 metres thick. The bituminous coal contains 8-26% ash, sulphur up to 0,9%, volatile matter 22-30% and calorific value 21-28 MJ/kg.
86 3.9.2. COAL PRODUCTION TRENDS AND PROSPECTS
The State Mining Corporation (Stamico) controls Tanzanian coal production. Output began in 1953 from an underground mine at lima, in the Snooze Kiwira field. Production, using pillar extraction, was on a very small scale and the output went to local tea-estates and rural industries. In the mid-1980s, it remained the only source of supply in the country and produced only 10 000 tpa.
The 1970s saw various proposals to develop Tanzanian coal production. All floundered on the problem of a small local market, lack of transport infrastructure. limited local expertise, and serious difficulties in obtaining finance. Even after the completion of the Tanzanian-Zambian railway in 1976, the remoteness of the coalfields remained a fundamental problem.
The early 1980s were rather more productive. In 1982 Tanzania and China agreed the construction of an underground mine at Kiwira. This revived a late 1970s proposal to construct a 300 000 tpa mine. The 1982 scheme envisaged a more gradual build-up of production, foreseeing output of 150 000 tpa in the early 1990s, rising to 300 000tpa by 2000. Final output of 600 000 tpa was anticipated, but no date for reaching this level was given. Output was intended for use in new cement, pulp and paper, and power generation plants.
In 1984 British Mining Consultants were awarded a contract to evaluate reserves at Songwe Kiwira and assess the feasibility of developing an opencast mine in the region. Output of 500 000 tpa was envisaged. The contract also included providing assistance at lima, with the aim of increasing output to 48 000 tpa.
Schemes to develop Mchuchuma coal resources in association with iron ore deposits at Lingang a were also under consideration in the early 1980s.
By the late 1980s it was apparent that only the more modest of these various schemes had made any progress. The Kiwira mine opened on schedule in late 1988, with its initial output at 93 000 tpa. However, it was having problems selling its output in late 1989 because of the high ash content. The mine mouth power plant built there had also been reduced in size, from 24 MW to 6 MW. Schemes for other consuming plants, which had been planned in the early 1980s, appeared to have been abandoned. These changes make it questionable whether Kiwira will secure enough markets to operate at current capacity, let alone expand to an eventual 600 000 tpa.
87 By 2000 output is unlikely to exceed 200 000 tpa and could well be under 100 000 tpa. The very limited local market, lack of infrastructure, and distance from the coast, together with extreme financial difficulties in funding new investments, will limit expansion. (IEA Coal Research, 1991: 69/70)
3.9.3. CONTRIBUTION OF COAL TO THE ECONOMIC AND REGIONAL DEVELOPMENT
ECONOMIC GROWTH
Tanzania's abundant resources offer many opportunities for development. Agriculture is the economic lifeline of the country. Mining and tourism are important growth sectors. Economic policy is geared towards creating an enabling environment for private sector involvement and reducing the role of government in business and economic activities. Broad-based development plans stress the provision of food, shelter, drinking water, education and health care at village level.
Since the mid-eighties Tanzania has followed an Economic Recovery Programme (ERP), supported by the International Monetary Fund, The World Bank and other international institutions and donors. The ERP has included many measures for liberalisation of trade and has sought to encourage private investment in various sectors of the economy, notably those involving exports and the generation of foreign exchange earnings.
Economic strategies include:
Attaining an average economic growth rate in real terms of around 5% a year by ensuring efficient mobilisation and use of resources.
Intensifying restrictive fiscal and monetary policies to reduce the annual rate of inflation below 10%.
Achieving a viable external position in the medium-term thereby reducing dependence on exceptional balance of payments financing.
Ensuring adequate foreign exchange reserve levels equivalent to at least three months imports and
88 o Reducing the public sector role in the agriculture, industry, trade and mining and facilitating substantial private sector involvement of those sectors, including the strong encouragement of foreign direct investment. (South African Development Community, 1997: 10.4.)
3.9.3.2. MINING'S CONTRIBUTION TO THE ECONOMY
Tanzania is rich in mineral resources. Investment is needed to upgrade technology, renew ageing plant and machinery used for transporting bulky minerals. Although its share of national income is small, the mining sector contributes a significant share of exports and has attracted new foreign investment in recent years.
Gold production has been a great success with the introduction of the economic reforms, which curbed illegal mining. There is much artisanal production but new commercial mines are also being developed with foreign partners.
Coal production increased sharply with the opening of a large new coal mine at Kiwira in the South west of the country in 1998, developed with Chinese aid. The mine capacity is 93 000 tpa and it supplies the new paper and pulp mill at Mufindi and the cement plant at Mbeya. (South African Development Community, 1997: 10.8.)
89 TABLE 3.31. COAL DERflAND / PRODUCTION ANDTRA DE
COUNTRY: TANZANIA a) a) 43) ..-- cn cn CD a) I-- 01 ,-- a) a) M ,-- a) a) v lil a) a) a) a) O ,. a) ..- cn oo CO N 0/ CO O ..- M ILLION TONS - 2000 ESTIMATE
Demand
0 0 CD 0 0 Lc) 6 O to 6 0 6 0 to 00 0 In ci 0 CV Nr 0 co O 6 6 0 LOU) 6 4-
0 0 Steam Coal 90' 6 co to 6 0 to 0 LO 6 0 Cs! 6 0 co 6 e Ci 6 0 6 o 4. i..- . o 0.04 0.06 II
Production 6 0 CO 00 0 00 o to 0 o CO ► CNI 6 0 00 0 ID LO 6 0 CO 6 0 NI- 6 o Steam Coal 6 0 LO 4- W 6 0 0 ID 6 0 141 o in C4 6 0 TS' 6 6 0 CO 6 0 6 C) CP 6 0 ID o .4. o.osi 90 I Total H i c - ,
0 6 to c) 0 0 0 0 0 0 0 o o 6 0 0 6 0 0 0 0 6 0 0 0 0 0 6 o o 6 Q 6 _ - 2 0
o o 0 o 0 ar 0 0 o o 0 6 0 0 0 0 0 0 0 0 0 6 0 6 o c) 6 I Exports 6 0 0
SOURCE: World Coal Trade Statistics (WEFA ENER GY) TANZANIA: J[TUMIINOUS COAL DEPOSITS MAP 9.
Mwanza 0
TabOra INDI 1N 0( F k
',)!t
® .;Ufi a
a ......
0.8o Kiwira .
KEY 0 INTERNATIONAL BORDERS LA RAILWAY
91 3.10. ZAIRE - DEMOCRATIC REPUBLIC OF CONGO (RAAP 10)
3.10.1. COAL RESOURCES AND QUALITIES
Bituminous coal deposits occur in isolated basins in Katanga province, the metal-rich region of South Eastern Zaire. They were formed in Palaeozoic times and seem to be linked with the extreme eastern end of the Karoo system deposits. However, the stratigraphic correlation with Southern Africa is still unclear. The extent of the resources is also uncertain. In-situ reserves of 1 000 million tons have been estimated, however, economically recoverable reserves of 600 million tons have been officially claimed for the Lukuga coalfield alone.
3.10.1.1. LUKUGA AND LUENA COALFIELDS
Lukuga has five seams with an aggregate thickness of 2,75 to 6,50 metres. Seam Number One is the most consistent, at a thickness of 1,25 to 2,40 metres. The field is cut into several blocks by faulting, which limits exploitation to small areas.
The same problem applies to Luena, which has four relatively small sections containing two to four seams of up to 5 metres thickness.
TABLE 3.32. ZAIRE (DRC) - COAL QUALITIES
LUKUGA LUENA
Moisture % 5 - 7 5.5 Ash % 15 - 20 15 - 21 Volatiles % 31 - 32 30 - 34 Sulphur % NA NA Gross Calorific value MJ/kg 21 - 25 25
3.10.2. COAL PRODUCTION
Coal output of some 100 000 tpa is well below the 300 000 tpa produced in the late 1950s. Production is limited to the Lukuga and Luena fields, with the former now the most active. Almost all the coal is mined by Gecamines, the state mining company, for consumption in its copper mining and processing operations
Future coal production will be dependent on the future of the copper industry. The prospects for this are at present not very good. In 1986 an ambitious five-year plan was launched. This
92 envisaged the re-organisation of Gecamines so as to encourage private sector involvement and foreign investment. Priority was placed in national investment plans on modernising the industry and the transport infrastructure. These plans have, however, been only partially successful. Financing of investment remains a problem, and output from the industry has continued to decline.
Coal output is thus likely to remain at around 100 000 tpa for the next decade. Forecasts of output of up to a million tons a year by 2000, made at the beginning of the 1980s, are entirely improbable. Coal and coke imports are, similarly, unlikely to rise significantly - and could in fact decline. (IEA Coal Research, 1991: 71/ 72)
3.10.3. CONTRIBUTION OF COAL TO THE ECONOMIC AND REGIONAL DEVELOPMENT
3.10.3.1. ECONOMIC GROWTH
The country has been in political turmoil, which has resulted in economic chaos. Historically the mining industry accounted for 25% of Zaire's GDP and about 75% of total export revenues. Proposed funding by the World Bank and the IMF have been postponed due to the political unrest. The World Bank suggested a privatisation scheme for Gecamines to raise money for modernisation of the mines and make the company more competitive.
In 1993, the political unrest had a disastrous effect on the economy and social environment. The macro-economic imbalances were exacerbated by a general decrease in economic activity, hyperinflation and a rapid depreciation of Zaire's currency, caused by the excessive printing of money.
However since then foreign investment has returned to this country, mining activity is on the increase and stability is expected to return to the country.
3.10.3.2. MINING'S CONTRIBUTION TO THE ECONOMY
From 1993, the overall decline of the Democratic Republic of Congo's (formerly Zaire) mining industry continues as production of copper and cobalt, formerly the foundation of the nation's foreign currency earnings, has continued. Cadmium, coal, gold, crude petroleum, silver and zinc have also continued to decline since 1990. Cecamines (the state parastatal mining company) is
93 responsible for most of Zaire's copper and all of its cadmium, coal, cobalt and zinc production. The drop in production and as a result export revenues over the past several years of civil war and unrest, further aggravated the company's already weak cashflow, which in turn affected the Zairian economy.
However, recover of this sector started in the second half of 1994 and continued into 1995, in spite of the worsening political climate. Production increases in most mining commodities were noted during 1995 and 1996.
Coal is only produced locally for the copper and other industries and is not a major contributor to GDP.
94 TABLE 3.33. COAL DEMAND/ PRO DU CTIO N AND TRADE
COUNTRY: ZAIRE a) a) r- -• a) a) CO .-- a) a) ,- a) a) LO ,-- Nt- 0 a) a) a) CM CD a) V) , a) co Cr) ...- a) o) P ,- a) co CO M ILLION TONS 2000 ESTIMATE
Demand 6 CM to 6 C \I LO 6 6 CM LC) 6 Cal CM 00 . CM CD CM -4 0 CM O 6 (NJ O 6 CV O ci 6 Cal o 4 4 4 4 . - -
Steam Coal 6 CM 6 CM to In 6 CM g CM - O CM o 6 CM c) 6 CM 0 6 IN 0 gi' I Total 0.20 it 0.24 0.25
Production 6 a CNI 6 N CM CM 6 a CM 6 gr- 6 . CM 0 a CV 6 - c) 6 v- o 6 .- o 6 a- 0 6 a- o - - - - -
Steam Coal CM 6 P CM 6 e- CM 6 a- 6 ,1-• CM CM 6 a- 0 a.- CM 6 , o 6 a-. 40 6 a... c) 6 e- 0 6 a- 40 I- 45 O 95
Trade
Imports
Steam Coal Imports 6 CO 01 6 a- CO 1 6 v- CO 6 a- CM a 6 0 000 a CV ci ,r- o o 6 a- o 6 a- 6 6 .- 0 a . - - - - -
Zimbabwe 6 CI 6 C.) 6 a- C., 6 a- CO 6 a-- Cal 6 0 sr- CM 6 , c• P o 6 a- 6 .1-• c) 6 a- 40 3 1-- Tota l AfricalM. East - a- 6 or- r") 6 Ir PI 6 e- el 6 in I 6 r. Cad e- Cal ai- 6 .t- 40 6 c) 6 Nr• 0 6 c) 6 0 45 2 a-• - o .
SOURCE: World Coal Trade Statistics (WEFA ENE RGY) (DRC) : IP HUM:II:NOUS COAL DEPOSITS MAP 10.
Kisangani •
Kindu:
Ilebo 0 c; rOKinshaa
K balo
,. Karnin a
KIEV INTERNATIONAL BORDERS LI RAILWAY
96 3.11. ZAMBIA (MAP 11)
3.11.1. COAL RESOURCES AND QUALITIES
Zambian coal deposits were formed in Palaeozoic times, in common with those in most of southern Africa. The bituminous and sub-bituminous coals occur in isolated troughs, of which only two have been explored in any detail: the Siankondobo and Luano coalfields. Of these two, only the former is close enough to the country's main markets to be considered economic at present. Thus, whilst potential in-situ reserves may well exceed 1 000 million tons, accessible coal amounts to only the 100 Million tons or so in the Siankondobo, or Maamba, field.
Siankondobo consists of a series of distinct basins between Nkandabwe and Mulungwa in the mid-Zambesi valley. The most important basins are Kazinze and Izuma, which between them have measured reserves of some 65 Million tons. Seam thickness varies across the coalfield, but at Kazinze 8 metres of coal occur in the Main Seam, which is shallow and gently dipping.
3.11.2. COAL PRODUCTION TRENDS
Coal production in Zambia only began in the late 1960s, when the Unilateral Declaration of Independence in Rhodesia (Zimbabwe) made the existing source of supply politically unacceptable. From 1966 to 1969 an easily accessible but limited area of reserves at Nkandabwe was worked. At the same time an area of coal which would support longer-term development was sought. The chosen location was Maamba, which straddles the Kazinze and Izuma basins.
The Zambian Government and Charbonnage de France developed the mine at Maamba in 1969 as an opencast strip operation, with coal preparation plant, aerial ropeway and ancillary facilities. The mining company, Maamba Collieries Limited, a subsidiary of the parastatal organisation ZIMCO, also owns and manages the nearby township. Mining was based on a dragline operation, with a bucket capacity of 23 cubic metres. Raw coal was trucked to the coal preparation plant, and washed material sent 17 km by aerial ropeway to Masuku rail terminal.
When operations began in the early 1970s the planned capacity was for 1,0 mtpa of washed coal. With a rejection rate of around 35% at the coal preparation plant, because of high ash content, this implied raw coal production of some 1,3 to 1,4 mtpa.
97 Washed coal production in 1976 was 772 000 tons, but in subsequent years fell steadily. Problems were caused by shortages of spare parts and replacement equipment, and a lack of the specialist skills required by an increasingly difficult mining operation. By the early 1980s the problems were becoming critical, and a rehabilitation of the operation was undertaken, with the assistance of British Mining Consultants Limited, aided by loans from the African Development Bank. This followed a feasibility study commissioned in 1984 with World Bank assistance. Rehabilitation involved purchase of new equipment and spare parts, extensive training, and mining system improvements. The aim was for a mine capacity of 850 000 tpa. In 1987-88 improvements in productivity were already apparent.
3.11.3. COAL PRODUCTION PROSPECTS
Zambian coal production prospects remain uncertain, in spite of the Maamba rehabilitation scheme. Problems are apparent on both the demand and output sides.
Demand is fundamentally tied to the copper industry, which is now starting to show signs of recovery. In 1995 JCI Limited entered into a one year contract with the Maamba Colliery to rehabilitate the mine. The contract called for the supply of a range of capital goods and spares to the value of US$10 million.
Operations at the mine were suspended during the week of 20 January 1997. The mine was flooded by heavy rains. Most of the equipment at Maamba Collieries in the south of the country had been damaged. Augustine Chipenzi, Maamba Mine's managing director, said most of the equipment at the plant, including the control centre, had been damaged and an overhaul was inevitable. (IEA Coal Research, 1991: 73/ 74)
Benicon Mining has purchased the Maamba Colliery for US$2,5 million (including US$16 million debt). The Zambia Privatisation Agency put up the colliery for sale in October 1996. Maamba Collieries Limited (MCL) is engaged in the mining and selling of coal to major industries in Zambia such as Zambia Consolidated Copper Mines Ltd (ZCCM), Nitrogen Chemicals of Zambia (NCZ) and Chilanga PLC, as well as for exports to neighbouring countries.
98 3.11.4. CONTRIBUTION OF COAL TO THE ECONOMIC AND REGIONAL DEVELOPMENT
3.11.4.1. ECONOMIC GROWTH
Since the 1991 multiparty elections, Zambia has undergone considerable reforms. The macro- economic policies adopted have included the freeing of interest rates and exchange rates, liberalising foreign currency control regulations, reductions of the government budget deficit, and creation of specialised bodies to promote investment. The pace of economic growth further increased during 1995 following the privatisation of several state-owned enterprises. (South African Development Community, 1997: 11.3.)
3.11.4.2. MINING'S CONTRIBUTION TO THE ECONOMY
Zambia has a variety of valuable natural resources. Large deposits of copper have been the driving force of economic growth in the past two decades and the agricultural sector has vast potential given the country's temperate climate, large areas of arable land and plentiful water.
Zambia has been a mining country for more than 1 000 years and an exporter of refined copper to Asia, the Middle East and Europe for at least 400 years. The country rests firmly astride the central African plateau, a great repository of mineral wealth, which stretches from Shaba in the north to the gold and diamond fields of South Africa. From the end of the 19 th Century until 1964, Zambia, known as Northern Rhodesia, was under British rule.
Ancient mining sites were examined and explored and in 1927 the Roan sulphides were discovered at depth. By 1935 the Roan mine and another at Nkana, were together producing, 100 000 tons of copper/annum. From the late 1940s, new reserves were discovered and production increased steadily. The country established a reputation as one of the world's top producers of ultra-high grade copper.
At the time of independence, the new republic inherited substantial foreign reserves derived entirely from mining. The government began a programme of nationalisation, which included the mining industry. The two operating groups, Nchanga Consolidated Copper mines (owned by Anglo American Corporation) and Roan Consolidated Mines (owned by American Metal Climax) were taken over. The two companies were amalgamated to form Zambia Consolidated Copper Mines Limited under the management of the state. Although cobalt became a significant factor, overall metal Production has fallen consistently since that time. Copper production has fallen from
99 720 000 tons in 1969 to around 400 000 tons at present. In 1994, Zambia's mining industry, became a priority area of the Zambia Privatisation Agency.
A countrywide coverage of geochemical assessment is in progress and analysis, interpretation and compilation of the reserves has begun in recent years.
The new proposed Mines and Minerals Act will be based upon several categories of mining sector investment, including:
Large scale operations involving foreign investors. These will be characterised by substantial capital investment for development, the need for supporting infrastructure, and the potentially significant impact on the environment.
Small-scale operations at present mainly, but not exclusively, for (gemstones): These will be undertaken by Zambian nationals as well as foreign investors.
Artisanal mining in the informal sector is confined to Zambian nationals including traditional mining on a community basis and small-scale mining by individuals. (South African Development Community, 1997: 11.8.)
100 TABLE 3.34. COAL DEMAND / P RODUCTION AND TRADE
COU NTRY: ZAMBIA a) CI z a) a) 0 a) co co N a) co C1) ,-- a) N .-- •-• a) a) c•.) a) a) ,-- a) CD , ,-- a) o) LO a) .••• a) a) r•-• - 3) :r
MILLION TONS 2000 ESTIMATE
Demand a ci ci LOU 0 d ci LO ci if) a ci LO 0 nt 111 ci LO o 0 ci to ci O Nr LI) ci LO v V' u-) '1'
Steam Coal
O CD ci LO o on c:i LC) a ci LO co O LO 0 c; Re LO c) ci 0 nt Ifl ci '1' LO ‘1' tri n o . Total
Production ci LO 0 ci CO LOU) o d LO a ci LO o ci LO 0 ci LOU) ci v- Nt LO ci LC) 0 in cp 0 '1' -4- 00 u-) r
Steam Coal a O if) a ci LO a 46 LO o 46 LC) 0 ci ICI ci qt a ni: LA O nt 0 LO Lel a tal n 101 I To 71.47
Trade
V V
w° w° o l
0 0 0' 0 6 ez; 0 0 c; 0 O 0 0 46 0 0 0 0 0 O 0 0 0 o o 0 0 0
Imports ci 0 a 0 c; ci 0 a ci 6 0 0 ci• a a 0a 0 0 0 0 cS o o 0 0 0 O 0 0 c) c)
II Exports
SOU RCE: World Coal Trade Statistics (WEFA E NERGY) ITUMINOUS COAL DEPOSITS MAP H.
KEY INTERNATIONAL BORDERS LA RAILWAY
102 3.12. ZlilliBABINE (iillAP 12)
3.12.1. RESERVES
Coal-bearing strata in Zimbabwe occur within the lower part of the Karoo Sequence (Ecca Group) in graben basins trending northeast south-west and flanking the similarly orientated central portion of the Archaean Rhodesian Craton along its north-western and south-eastern edges.
The majority of the coal resources are located within the 12 metre thick Wankie Main Seam, the basal 4,0 metres of which is coking coal quality.
Five coal areas have been described in varying detail and inferred tonnages are stated for each area and for the country as a whole.
3.12.1.1. WANKIE COAL MEASURES
Outcrops of coal were found in both the Zambezi and Sabi-Limpopo basins as early as 1894, but although many of these areas have been investigated the only coalfield which has been exploited so far is known as.the reduced Wankie Coal Concession area, approximately 160 km 2 in extent.
The entire coalification area can be referred to as "The Wankie Coal Measures", incorporating the Wankie, Entuba, Western Area, Sinamatella and Lukosi Coalfields.
At Wankie, the No. 1 Colliery commenced in 1903 and this and three other collieries have been well able to supply the country's needs. Underground mining depths vary between 60 and 150 metres and increase westwards, but a large proportion of the field is mineable by opencast methods.
The Wankie Opencast and Wankie No. 3 Colliery are now operational, producing a total of 6,0 mtpa of run of mine production. They plan to increase ROM production to 7,2 mtpa by 2000 and 9,8 mtpa by 2005.
The thickest and most important coal seam at Wankie, and indeed in the entire Karoo succession in Zimbabwe, is known as "The Main Seam" or "The Wankie Main Seam". It is up to 12 metres thick and contains both coking and thermal coal. This seam, with similar characteristics, continues westwards at depth into the Wankie Western Area Coalfield.
103 The coking coal occurs in the basal part and
The thermal coal in the upper two-thirds of the seam.
If the coking coal is washed to produce a density fraction of <1.40:
The product usually has a high yield (between 70-90%).
Is a very good straight coking coal with a swell index of about 5.
A Micum 10 index of about 10.
A Micum 40 index of about 72 (Micum indices on + 20 mm coke).
An ash content of around 5%.
The phosphorus content of the coking coal is low at about 0,001 - 0,01 for the raw coking coal.
The recorded mean value of sulphur is approximately 1,3%. This is reduced to less than 1% on washing at 1,40.
The quality of the coal in the seam deteriorates upwards, except in sulphur content which decreases. Upward from the base of the seam, the percentage of ash in the raw coal increases almost progressively and at an almost constant rate. The same applies to the percentage of inert macerals. The base of the seam, in the area of the Wankie Coal Measures, is often bright and rich in reactive coking macerals, whereas towards the top of the seam the coal is dull without reactive constituents.
The basal coking coal part of the seam probably formed from in-situ plant growth and peatification of this plant matter took place in an anaerobic environment, under water.
Reserves of in-situ coking coal are estimated at 478 million tons, of which 334 million tons could be extracted by the longwall mining method.
104 For the upper steam (thermal) coal part of the seam, the coal apparently formed from detrital vegetable matter, which drifted into, and within the peat swamp belt and which degenerated from part of the time under aerobic conditions (i.e. not under water). This resulted in a partial loss of valuable volatile matter and, consequently, inert macerals formed from the drift vegetable matter.
TABLE 3.35. WANKIE COALFIELD — AVERAGE RUN—OF—MINE COAL QUALITY
WANKIE COALFIELD
Moisture % 0.76 Ash % 9.77 Volatiles % 23.77 Fixed Carbon % 65.70 Gross Calorific value MJ/kg 31.40
The reserves of thermal coal, both opencast-mineable and underground-mineable, for the Wankie Coalfield, are given as approximately 700 million tons. In addition there is a large reserve, perhaps 75 million tons or more, of opencast high-ash thermal coal in the western shallow part of the area.
Overlaying the Main Seam in Western Area Coalfield and never more than a few metres above the Main Seam is a coaly horizon with several thin high-vitrinite coal seams called the No. 1 Seam.
These seams are, generally, between 0,5 and 2,0 metres thick, although in places they do occur up to 3,5 metres thick. When washed, the <1,40 density fraction:
Has a yield of about 25,60%.
An ash content of about 8 to 10,5%.
A volatile matter content of around 31%.
The washed product is mostly vitrinite and it has a swell index of around 8 and 9.
Where these seams are over 2 metres thick, they seldom occur individually over a single area greater than 2 km 2, although collectively they usually underlie an area very much greater than this.
105 No. 1 Seam coal is very useful for two reasons:
It is a superior optimum-mix coking coal for blending purposes and can considerably upgrade Main Seam blend coking coal by blending in a ratio (by mass) of approximately 25:75%.
It is a good additive to Wankie Coal Measures Main Seam thermal coal, to increase the volatile matter of the thermal coal and make it a more attractive commodity for the international market.
The Lubi bi area has been subdivided into three coalfields each with opencast reserves to a depth of 60 metres and large possible underground reserves from selected horizons within the coal measures.
Opencast reserves of extractable washed coal at Lubimbi total 300 million tons.
In the faulted southern extension at Hankano a further 152 million tons is available.
Around Dahlia, approximately 10 km southwest of Hankano, 231 million tons are available for opencast mining.
The overburden-to-coal ratio varies from 0,6 to 0,9. It is estimated that about 10% of the total in- situ coal (about 140 million tons), would float on a heavy medium of S.G. 1,40. This product has an ash content of 10,12% and is classified as a blend coking coal.
Lusulu has tremendous potential either as a high-volatile thermal-coal coalfield, or an oil-from- coal coalfield, or both.
It has a vast reserve of opencast-mineable coal of the Black Shale and Coal Formation and contains the Wankie Main Seam and the No. 1 Seams.
It is estimated that some 3 000 million tons could be mined by opencast methods.
This coal is ideal for the international thermal coal market. (It has a fuel ratio of about 1,5 and its volatile matter content is about 40%. Washing of the coal will be necessary to reduce ash content and to remove coarse pyrite and siderite).
106 o The coal seams total, on average, approximately 19 metres in thickness, with an average ash content of the raw coal of about 26,5%. In parts of the opencast-mineable portion of the coalfield, the basal 5 metre has a raw-coal ash content of about 15%.
Further to the northeast lies Sengwe , with an average seam width of 12 metres and a provisional estimate of 200 million tons of opencast-mineable coal containing less than 20% ash (raw-coal basis). A further 200 million tons could be extracted by underground mining methods.
The coal is of a lower rank than that at Wankie and apparently even lower than that at Lusulu. It has raw-coal moisture content of around 6%. It is non-coking, but its average sulphur content at 0,6% and phosphorous at 0,02%, make it attractive as a fuel and reductant in the manufacture of ferrochrome and for other similar metallurgical processes which do not require a hard coke.
The Lusulu-Sengwe could one day be the focal point of a fairly large coal industry in Zimbabwe, however, for this to take place it will be necessary to link, by railway, this remote part of the country with the main railway route at some point near Gatooma (Kadoma) a distance of approximately 200 km. An alternative route is between Lusula and Gwelo (Gweru) but the distance is close to 300 km.
3.12.1.2. TULI COALFIELD
Coal was discovered in the Mazunga area on the east bank of the Umzingwani River in 1895, and this locality and the nearby Sinwesi and Massabi areas, collectively known as the Tuli Coalfield. The coal seams are very thin, have high ash content and are dislocated by faulting and dolerite intrusions. The marginal part of the Massabi area has indicated reserves of some 30 million tons of coal that could be beneficiated to produce some 13 million tons of good quality, low sulphur coking coal.
3.12.1.3. BUBYE COALFIELD
The Bubye Coalfield, 100 km downstream on the north bank of the Limpopo River, has also been disrupted by faulting and dyke and sill intrusions. The reserve estimates of saleable coal are of the order of 24 million tons.
107 3.12.1.4. SARI-LUNDI BASIN COALFIELDS
The three main areas examined were Bendezi on the east bank of the Lundi River, Malilongwe, 35 km to the east-northeast beyond the Chiredzi River, and Mkushwe (Mkushwe Coal Measures) just west of the Sabi River. At Bendezi, thin lenticular seams of high volatile coal were considered to have some potential southwards beneath basalt cover.
At Malilongwe, two coal horizons separated by 10 metres of grit have been examined; each varied in thickness from less than one metre to 3,5 metres of bituminous coal with a very high ash content. Reserves were calculated as 86 million tons in the upper group and 173 million tons in the lower group. (Duguid, 1986: 2091-2097)
TABLE 3.36 INFERRED RESOURCES FOR VARIOUS ZIMBABWE COALFIELDS
Mineable Run of Mine In-situ Reserves Coal Reserves Coalfield Million tons
Wankie-Entuba 2 100 1 400 Lubimbi-Sengwa-Sessami 23 800 9 400 Tuli 120 60 Bubye 60 30 Sabi 570 300
Total Zimbabwe 26 650 11 190
3.12.2. PRODUCTION TRENDS
Zimbabwean coal production commenced in 1902 when Number One colliery opened at Hwange (Wankie). A railway to Bulawayo was completed the following year.
In 1927 a second mine. Number Two Colliery, was opened and production rose to 1,0 mtpa. Output climbed steadily in the 1940s and 1950s, exceeding 3,0 mtpa in the mid-1950s after the commissioning of Number Three colliery. However, the 1960s and 1970s saw some decline.
Number One Colliery closed in 1960, after the opening of the Kariba Dam. The Unilateral Declaration of Independence led to a loss of markets in neighbouring countries, and Number Two colliery closed in 1972 after a major disaster. A fourth colliery was opened in 1976 but operated for less than six years before closing for economic reasons.
108 However, opencast production at Wankie expanded considerably in the 1980s and 1990s reaching almost 5,7 mtpa of run of mine production by 1995.
3.12.3. FUTURE COAL PROSPECTS
Output over the next decade will be dependent on the evolution of its existing markets in power generation, coke ovens, and industry. Exports, which have been seriously considered in the past, could materialise in the near future.
Electricity generation requirements accounted for virtually all the increase in Zimbabwean coal use in the past decade. The main power station is the Wankie (Hwange) mine mouth plant. Stage two of the station was completed in 1987 with the commissioning of 2 x 220 MW sets, adding to the 4 x 120 MW sets built in 1983.
Coking coal demand is unlikely to see much growth. The Zimbabwe Iron and Steel Corporation (ZISCO) has severe financial problems, with losses running at about Z$100 million a year (US$41 million). A modernisation plan costing Z$1000 million (US$409 million) has been proposed by the company to expand production and restore profitability, but is unlikely to obtain funding. Coking coal demand from ZISCO is thus unlikely to increase. Nor are WCC's own newly refurbished coke ovens likely to expand sales. Demands from export customers in Zambia and Zaire has declined, and domestic consumption is unlikely to increase.
National Power of the UK and Rio Tinto have recently signed an agreement to build a US$1,0 billion power station in Zimbabwe. National Power will invest about US$135 million in the project, the first announced since the firm's November pledge to double its US$1,5 billion overseas investment in two or three years. National Power has proposed a 4 x 350 MW mine mouth Power Station at Gokwe in the Northwest of Zimbabwe.
Demand is expected to come from natural growth and the expiry of RSA power supply agreement to Zimbabwe in 2002. Rio Tinto's Gokwe North resource contains approximately 360 million tons of reserves. The coalfield is an extension of the Wankie Coalfield. The coal does not need washing, is relatively high ash and has a CV of approximately 18 to 19 GJ/ ton. The reserve is opencastable with a 2:1 strip ratio and a 22 metre single seam. (IEA Coal Research, 1991: 77/78)
109 3.12.4. CONTRIBUTION OF COAL TO THE ECONOMIC AND REGIONAL DEVELOPMENT
3.12.4.1. ECONOMIC GROWTH
The country's geographical diversity has enabled the tapping of natural resources and agricultural wealth. These two sectors have allowed the development of a fairly dynamic manufacturing sector. The various economic activities are well integrated. As a result, Zimbabwe has one of the most advanced economies by Sub-Saharan standards with an industrial base only second to South Africa.
Under a comprehensive reform programme initiated in 1990 the country has sought to create a deregulated market-driven economy by freeing interest and exchange rates, liberalising foreign currency regulations and restructuring its expenditures.
Trade liberalisation is a major component of the reforms. Major successes of the reform programme recorded so far are:
The elimination of foreign currency restrictions.
The rationalisation of the previously overvalued exchange rate, which is now determined by the market. Current account transactions are now fully convertible.
Substantial drop in the growth of the budget deficit, as a proportion of the GDP through reductions in government's recurrent expenditure.
Reductions in personal, corporate (currently 37,5%) and other forms of tax, and
Substantial removal of subsidies and elimination of almost all price controls. (South African Development Community, 1997: 12.4.)
3.12.4.2. MINING'S CONTRIBUTION TO THE ECONOMY
The gold belts are also the source of Zimbabwe's nickel, asbestos, iron ore and pyrites production and contain reserves of antimony, tungsten, corundum and limestone. The world's third-largest known source of high-grade chromite, second largest source of platinum group metals and significant reserves of nickel are found in an area known as the Great Dyke.
110 Coal is one of Zimbabwe's primary energy sources. High quality coal deposits occur in Hwange, parts of North Matabeleland, and the Zambezi valley and in the south east, by the Gonagre-Zhou National Park. (South African Development Community, 1997: 12.9.)
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KEY INTERNATIONAL BORDERS RAILWAY 0 KNOWN COALFIELDS
113 3.13. SOUTH AFRICA (MAP 13)
South Africa is the largest coal producer in Africa and the second largest steam coal exporter in the world.
3.13.1. RESERVES
South Africa has enormous coal reserves as shown in the table below. The success of these reserves on the international market is not due to the outstanding quality of the coal but instead the quality consistency of the product, especially in the Witbank coalfield. The low sulphur levels of South African coal add to its attractiveness as environmental laws continue to tighten on most coal importing countries. South Africa is fortunate that most of its reserves are fairly shallow with few seam disturbances that allow for low cost extraction. This has kept South Africa competitive despite the fact that fob spot prices are at an all time low at present.
TABLE 3.38. SOUTH AFRICAN ESTIMATED RESERVES TONS
MAP COALFIELD RECOVERABLE RUN OF MINE RESERVES REF RESERVES PRODUCTION REMAINING NO (Bredell 1987) From 1982 - 1998
1 WITBANK 12 460 000 000 2 002 110 497 10 457 889 503 2 HIGHVELD 10 979 000 000 841 361 449 10 137 638 551 8 WATERBERG 15 487 000 000 327 006 246 15 159 993 754 7 VER/SASOLBURG 2 233 000 000 292 843 559 1 940 156 441 5 KLIP RIVER 655 000 000 81 576 549 573 423 451 6 VRYHEID 204 000 000 79 669 295 124 330 705 3 EASTERN TVL 4 698 000 000 81 203 702 4 616 796 298 4 UTRECHT 649 000 000 62 148 435 586 851 565 12 SOUTH RAND 730 000 000 22 030 000 707 970 000 10 KWAZULU/NONGOMA 98 000 000 12 922 849 85 077 151 9 SOUTPANSBERG 267 000 000 5 005 329 261 994 671 13 FREE STATE 4 919 000 000 215 977 4 918 784 023 11 KANGWANE 147 000 000 591 955 146 408 045 14 SPRINGBOK FLATS 1 700 000 000 0 1 700 000 000 15 LIMPOPO 107 000 000 0 107 000 000
TOTAL 55 333 000 000 3 808 685 842 51 524 314 158
(South African Coal Report, 1999: 5)
114 3.13.2. MINERAL RIGHTS AND MINING POLICY
South Africa will enter the new millennium with mining legislation in place that will start a process of transferring mineral rights from the mining houses to the State. The government's intentions have been set out in a white paper, "A Minerals and Mining Policy for South Africa," released on 20 October 1998.
Under South African law, land ownership confers ownership of the rights to any mineral found on the land. There are some cases where rights are vested in the State, but private ownership accounts for approximately two thirds of all mineral rights in the country.
The government says the move is primarily aimed at allowing South Africa's disadvantaged black majorities access to the country's mineral wealth. The Department of Minerals and Energy (Department of Minerals and Energy, 1998:10) noted, "A distinguishing feature of the South African mining industry is that almost all privately-owned mineral rights are in white hands." There will be security of tenure. There will be an interim period, as yet undefined, under which existing projects and those in the pipeline will be able to be completed.
At the press conference that launched the white paper, "A Minerals and Mining Policy for South Africa," the deputy director general at the department of mineral and energy, Dr. Jan Bredell said, "The right to prospect and mine will be vested in the State." Bredell went on to say that a transition period to assure the mining industry security of tenure, over existing projects would continue. With regards to compensation for these mineral rights, the white paper, "A Minerals and Mining Policy for South Africa," could offer no real clarity.
The white paper, "Minerals and Mining Policy for South Africa" noted: Those holding rights over inactive areas would also be given time to put forward argument as to why licenses to prospect and later mine on the land should not be given to others.
It will promote exploration and investment leading to increased mining output and create more jobs.
The State is to be custodian of the nation's mineral resources. This will prevent hoarding of mineral rights and sterilisation of mineral resources and address past racial inequities by ensuring that those previously excluded from participating in the mining industry gain access to mineral resources and benefit from their exploitation.
115 The government says it will bring about changes in the current system of mineral rights ownership with as little disruption to the mining industry as possible. It plans to promote minerals development by applying the "use-it and keep-it" principle.
Security of tenure will be by granting prospecting and mining licenses for specified periods that are capable of cancellation or revocation only for material breach of the terms and conditions of the licence. The holder of a prospecting licence will also be entitled to progress to a mining licence on compliance with prescribed criteria, not stated.
Annual minimum work and investment requirements will discourage the unproductive holding of licences. A retention licence will be introduced and granted in cases where exploration establishes the existence of an ore reserve which is, at that time, considered to be uneconomical due to prevailing commodity prices or where the exploitation thereof might lead to market disruption not in the national interest.
Existing operations will be given time to licence their ongoing prospecting and mining activities. (Department of Minerals and Energy, 1998: 10-18)
3.13.3. COALFIELDS
GEOLOGICAL OVERVIEW
The sedimentary deposits of the Karoo Supergroup of South Africa range from early carboniferous to late Jurassic. The rocks of the sequence, which lie within the main Karoo Basin with scattered outliers to the north, cover about half of the total area of the Republic of South Africa. While there are a number of mineral deposits in the sequence the most valuable deposits are the large reserves of coal.
The sequence ranges from glacial tillites at the base through large thicknesses of sandstones and shales and is capped by basaltic and rhyolitic lavas. Intrusive sheets and dykes of dolerite are common.
The entire sedimentary sequence is present in the Southern Cape where it attains a thickness of some 10 000 metres and disconformably overlies the Witteberg Group. To the north the beds thin progressively and overlap onto older sequences. Away from the influences of the Lebombo and
116 Natal monoclines and the Cape Fold Belt the beds are horizontal or dip into the basin at low angles. Outliers north of the basin generally dip northwards.
The main Karoo Basin had a cratonic setting with brief oceanic connections during the Dwyka and Ecca Periods. It was characterised by a stable shelf area in the north giving way towards the south and east to unstable, slowly subsiding shelves and rapidly subsiding troughs.
The Dwyka Group
Composed of tillites, varied shales, pebbly mudstones, stratified sandstones, and granulestone the Dwyka formation was laid down during the Permo-Carboniferous glaciation of the Southern Hemisphere. In the Eastern Cape area the Dwyka tillite attains its maximum thickness of 1 100 metres in the Cape-Karoo Trough but thins northwards to occur as isolated deposits in pre-Karoo valleys of the Northern Free State. Evidence of interglacial periods is inferred from varied shale and interglacial mudstone and sandstone.
As Gondwanaland drifted out of the polar latitudes there was an overall change in climate and a retreat of the icesheets bringing a close to the deposition of the Dwyka sequence.
The Ecca Group
Overlying the Dwyka is the Ecca Group that occurs widely over the Karoo Basin. The Lower Ecca is composed of the Pietermaritzburg Shale Formation which is predominantly a bluish-black micaceous shale. This formation, which is 1 200 metres thick in the KwaZulu Natal Trough, thins to the north wedging out until the Vryheid Formation overlaps it to lie directly on the Dwyka Formation.
The Middle Ecca is composed of the Vryheid Formation that occurs as a sequence of coarse sediments between the overlying and underlying shale formations. It is composed mainly of coarse grained arkose, conglomerate, micaceous siltstone, carbonaceous shale, coal seams and thin seams of limestone. Sedimentary structural features indicate deposition by shifting variable currents in shallow water. An extensive glauconite-rich sandstone overlying the No. 4 Coal Seam and marine microfossils in thin carbonaceous shale beds point to the occurrence of marine trangressions into the predominantly fluvio-deltaic environment.
117 The Upper Ecca Sub Group contains the Volksrust Formation that is composed of bluish-black shales and mudstones with very minor argillaceous sandstone and limestone layers. These sediments were deposited mainly under shallow water fluvio-deltaic conditions with coal swamps in eastern South Africa west of the Lebombo Mountains as well as in the lacustrine coal basins of Northern Province.
The Beaufort Group
Stratigraphically above the Ecca Formation is the Beaufort Group which contains two subgroups - the Adelaide of late Permian and the Tarkastad of early Triassic. In Central KwaZulu Natal the Lower Beaufort is known as the Estcourt Formation. It is about 400 metres thick and consists of laminated carbonaceous shale with subordinate cross bedded, often coarse grained sandstones with a few thin coal seams. On the eastern side of the country, in the Lebombo Mountains area, the Emakwezini Formation overlies the Volksrust Formation and contains shale, mudstone, sandstone, and coal seams. In the Central and Northern portion of the Karoo Basin the lower most beds of the Beaufort Group become progressively more argillaceous. As the upper beds of the Ecca Group in this area are composed almost entirely of shales, it is virtually impossible to differentiate between the two series.
The Tarkastad Subgroup, which is some 1 700 metres thick in the Eastern Cape and the Free State, thins rapidly northwards.
The Stormberg Group
The Molteno Formation of the Stormberg Group consists of three composite sedimentary wedges containing one or more upward fining units. The wedges thin out to the north. Only the Indwe Sandstone member, the central unit, extends to the northern basin margin. The upward fining units consist of coarse, pebbly arkosic sandstones, overlain by finer-grained sandstone, shale and coal.
3.13.3.1. WITBANK COALFIELD
The Witbank coalfield extends over a distance of approximately 180 km in an east/west direction and 40km in a north south direction.
118 Five, and in some areas up to ten, coal seams can be identified in this coalfield. Of these, four are normally mineable. In ascending order there are the No. 1, 2, 4 and 5 seams. The seams are developed over a vertical distance of between 70 and 120 metres. Seam distribution is strongly controlled by the Pre-Karoo topography. South trending Pre-Karoo glacial valleys have had a strong influence on seam distribution. The bottom No. 1 seam is confined to the deeper parts of these valleys. As sediments built up in these valleys the higher seams covered progressively larger areas. Post-Karoo erosion led to the weathering or removal of the No. 5 seam and to a lesser extent the No. 4 seam over wide areas.
NO. 1 SEAM
The No. 1 seam is the least important of the four economically mineable seams. It is generally better developed in the northern part of the coalfield, mainly near Witbank where it is approximately 1,5 metres to 2 metres thick. Elsewhere it is patchy and thin. The seam is mainly recovered by opencast methods.
NO. 2 SEAM
The No. 2 seam is the most important in the field containing not only approximately 70% of the recoverable coal, but also some of the best quality. In the main central section of the coalfield it averages approximately 6,5 metres. At underground mines the seam is mined to a height of around 4 metres, for the production of low ash metallurgical coal and steam coal for export. Elsewhere the zoning in the seam is less pronounced but selective mining usually takes place within the better quality lower part of the seam to heights of approximately 5 metres. In the opencast mining areas the full seam is extracted.
To the south west of Witbank the seam commonly has a thickness of around 8 metres, but the upper portion is generally shale and unmineable. The seam thins to some 3 metres towards the east. A thick sandstone or shale parting occurs locally in the upper portion of the seam.
NO. 4 SEAftli
This seam contributes some 25% of the resources of the Witbank coalfield. In thickness it ranges from 0,5 metres to 5 metres but can thicken to over 6 metres in the western part of the field. Where it is mined underground, it is at depths of 40 metres. The average depth over the whole field is approximately 65 metres. The coal is most suitable for power station feedstock.
119 NO. 5 SEAR
The No. 5 seam contributes only a small percentage of the reserves of the Witbank coalfield. It has been eroded over large areas and is generally present only in typographical highs as erosional remnants. Where it occurs, it is usually around 1,8 metres thick. The seam is chiefly mined as a source of blend coking coal for ISCOR and other metallurgical coal users.
3.13.3.2. HIGHVELD COALFIELD
The Highveld Coalfield is situated in the south Mpumalanga and covers an area of approximately 7 000 sq. km . It extends over a distance of some 95 km west to east and for approximately 90 km in a north south direction. It lies due south of the Witbank coalfield.
All of the five coal seams of the Witbank field have been recognised in the Highveld coalfield. Similar to its development in the north, the No. 3 seam is not mineable. The No. 1 seam has deteriorated badly and, while mineable in the Witbank field is not mineable in the Highveld Coalfield.
NO. 2 SEAM
The No. 2 seam lies at depths varying from approximately 30 metres along the northern margin of the coalfield to 240 metres in the southwest. The seam thickness ranges from 1,5 metres to 4
metres, but locally in the west and northeast it is up to 8 . metres thick. Generally, No. 2 seam contains low-grade bituminous coal with an ash content varying between 22% and 35% and calorific value between 20 MJ/kg and 23 MJ/kg.
NO. 4 SEAM
As further north in the Witbank field, the No. 4 Coal seam is composed of two discrete seams, the No. 4 Lower seam and the No. 4 Upper seam. The No. 4 Lower seam is the main seam of this coalfield and forms the bulk of the reserves. The seam lies at depths ranging from 15 metres where the seam is mined by opencast methods, to 300 metres in the south. Seam thickness ranges from 1 to 12 metres averaging 4 metres.
The No. 4 Upper seam is of mineable thickness in limited areas in the western part of the coalfield, but where the parting between it the No. 4 Lower seam is too thin to allow safe extraction of both seams the No. 4 Lower seam is mined in preference. Seam thicknesses vary
120 between 1,5 and 3,4 metres, averaging 2 metres. The quality of the seam is extremely variable, but generally consists of low-grade bituminous coal with and ash content of approximately 25% and a calorific value of 22 MJ/kg. The roof of the seam generally consists of interlaminated sandstone and siltstone that is susceptible to collapse after mining.
NO. 5 SEAM
The No. 5 seam varies in thickness from 1 to 2 metres. It is present over most of the field but is of mineable thickness only in the northern and western sectors. Depths range from 15 to 150 metres. There are few partings in the coal in the west, but in the north a shale parting 0,4 to 0,6 metres thick occurs near the top of the seam generally overlying 1,0 to 1,3 metres of coal and causing most difficult mining conditions.
3.13.3.3. EASTERN TRANSVAAL COALFIELD
The Eastern Transvaal Coalfield covers some 11 000 sq. km extending a distance of 150 km from north to south. The east west extent of the field is some 75km. It is bounded by the Witbank coalfield to the north, the Highveld field to the west and the Klip River and Utrecht coalfields to the south.
Seams are labeled A to E down through the sequence with E at the base.
E. SEAM
In the northern part of the coalfield, the E seam is well developed with a thickness of over 3 metres at depths ranging from subcrop to 100 metres. To the south the seam deteriorates in either quality or thickness.
D. SEAM
The D seam is usually too thin, but may thicken locally and offers opencast potential. In the Ermelo district it has a thickness of 0,6 metres at depths between 0 to 70 metres. The coal is very bright but in most areas is too thin to be mined with thicknesses ranging from 0,2 to 0,4 metres.
121 C. SEAM
The C seam is complex and usually split into several plies by partings of various thicknesses. The C Upper seam is well developed over the whole field. In the central and northern areas, the upper portion is typically of poor quality. The lower part of the seam is composed of good quality coal. The seam thickness varies between 0,7 and 4 metres with the lower, better quality section comprising approximately 66% of the total thickness
B. SEAM
The B seam varies in thickness from 1 to 2,7 metres with an average of 1,7 metres. The seam is generally of poor quality and the roof and floor generally consist of sandstone.
3.13.3.4. UTRECHT COALFIELD
This coalfield covers an area of approximately 5 000 sq. km . It lies between the Klip River coalfield to the west and Vryheid coalfield to the east.
Of the coal seams occurring in the Utrecht coalfield only four, the Alfred, Gus, Dundas and the Coking seams have been mined. The remaining seams are generally too thin and too inconsistent.
The Coking seam is the lowest of the major seams. It is generally thin and in the past has only been mined in the eastern part of the field. It has a maximum thickness of 1,5 metres and is usually composed of good quality, mainly bright, thinly banded coal. The seam can produce a good quality coking coal with minor beneficiation.
The Dundas seam, which is approximately 15 metres above the Coking seam, has only been worked in the eastern part of the field. In the west it is of variable quality and thickness. Both bituminous coal and anthracite are produced from the field.
Of the four exploitable seams the Gus seam has been the most extensively worked. It is approximately 17 metres above the Dundas seam and attains an average thickness of over 1 metre in the southern part of the field. To the north, the seam splits into an upper and a lower portion separated by a sandstone parting which ranges in thickness from 3 to 12 metres. In the north the upper split can reach a thickness of up to 3,3 metres. Near Utrecht the seam exhibits three distinct zones. In some areas an acceptable blend coking coal can be produced.
122 The Alfred seam is present over much of the coalfield, but while it exhibits the thickest development, it has not been extensively worked because of its quality.
3.13.3.5. VRYHEID COALFIELD
The Vryheid coalfield lies to the east of the Utrecht coalfield and covers an area of approximately 2 500 sq. km . It produces some of the best coking coal and anthracite.
The Coking seam was the first of the seams in the sequence to be mined. The seam is generally thin and rarely exceeds 1 metre. It has normally been worked in areas away from dolerite intrusions where it produces a good coking coal, often with a raw coal ash content of 7-8%.
In the northern and central parts of the coalfield the Dundas seam commonly contains two separate splits.
The Lower Dundas seam varies in thickness from 0,2 to 2,5 metres. It is most commonly interbanded bright and dull coal, often with a thin shale and sandstone parting in the top portion of the seam. The parting can thicken to 1 metre at which thickness it can present mining problems. To date this seam has been mined to produce both coking and thermal coal. Roof and floor conditions are generally poor.
The Upper Dundas seam lies between 1,5 and 6,5 metres above the Lower Dundas seam and has been worked over a limited area only. Over most of the coalfield the seam is 0,15 to 0,5 metres thick but in some areas it has developed to a thickness of between 1,0 and 1,2 metres.
The Gus seam is the most extensively worked seam in the sequence. All the major collieries are mining this seam or have worked it in the past. It varies in thickness from 0,5 metres to approximately 2,0 metres. In the eastern portion of the field the coal has been replaced by carbonaceous shale and there are no recoverable reserves. In other areas where the coal has been mined it has produced a high quality coal. Coal from the Gus seam has low sulphur content and extremely low phosphorus content.
The Alfred seam has not been extensively worked. The coal is of lower quality than the other seams yielding a moderate steam coal with an average calorific value of 26 MJ/kg to 27 MJ/kg.
123 3.13.3.6. NONGOMA COALFIELD
The Nongoma coalfield is part of the Zululand coalfield that stretches from Nongoma in the west, to the western side of the Lebombo Mountain Range along the KwaZulu Natal north coast, and from Durban through Swaziland to the southern boundary of the Kurger National Park. The Nongoma coalfield lies to the south of Swaziland.
3.13.3.7. KLIP RIVER COALFIELD
The coal region of northern KwaZulu Natal has been sub-divided into three geographically separate coalfields. From west to east these are the Klip River coalfield, the Utrecht coalfield and the Vryheid coalfield. The Klip River field is the largest and historically the most important. It is roughly triangular in shape and covers an area of approximately 6 000 sq. km , of which some 50% may be considered as coal bearing. The area is bounded on the west by the eastern escarpment of the Drakensberg Plateau.
The two major coal seams, the Top or No. 1 seam and the Bottom or No. 2 seam occur approximately 200 metres above the Pietermaritzburg Formation and approximately 120 metres below the Volksrust Formation. They are separated by 0,3 to 15 metres of predominantly coarse grained sandstone. The Top and Bottom seams have been correlated with the Alfred and Gus seams, respectively, of the Vryheid coalfield.
In the northern part of the coalfield the Top seam is the thickest and has been extensively worked, while in the central area the Bottom seam is thicker and contains the better quality coal. To the south the Top seam is again of greater importance.
Bottom seam coal from the central area can be washed to produce a good coking coal with swelling indices of up to 7.
3.13.3.8. KANGINANE COALFIELD
The Kangwane coalfield lies to the north of Swaziland. It is part of the Zululand coalfield that stretches from Nongoma in the west to the western side of the Lebombo Mountain Range along the Natal north coast and from Durban in the south through Swaziland to the southern boundary of the Kruger National Park.
124 Coal occurs as anthracite in thin steeply dipping seams. Faulting is common and both dolerite sills and dykes have intruded the coal measures. Reserves are small and field is of little economic interest.
3.13.3.9. WATERBERG COALFIELD
Within the Republic of South Africa the Waterberg coalfield covers an area of approximately 3 600 sq. km with dimensions from east to west of 90 km and over a distance from north to south of 40 km. It lies in the northwestern Northern Province on the Botswana border. The field is part of a larger Karoo basin that extends into Botswana.
The upper coal zone consists of seven coal units within a stratigraphic thickness of up to 70 metres. The sequence generally consists of bright coals interbedded and interlaminated with carbonaceous mudstone. Ash content of the raw coal is high and all seams require beneficiation, even for the production of a thermal coal product.
Rank increases from west to east within the coalfield and, with separation at a low gravity, a blend coking coal fraction with a swelling index of 3 to 4 can be produced from the central and eastern sectors.
Considerable faulting has occurred throughout the basin. The southern edge appears to be faulted with faulting extending into the basin mainly in northwesterly direction. Faulting also occurs in an east westerly direction, subdividing the basin into a number of structural units.
Although considerable drilling has been completed in the basin, development of the area has been limited.
3.13.3.10. VEREENIGING/SASOLBURG COALFIELD
In this coalfield the distribution of the coal measures has been controlled by the glacial valleys that originated during Dwyka times. They not only controlled the flow of water during the deposition but also the extent and position of swamp and coal development. The coal beds of the Vereeniging/Sasolburg field are restricted to these valleys which trend north south in the eastern part of the field and northwest to the southeast towards the west. The channels are up to 850 metres wide and some stretch over the full length of the coalfield.
125 The coal zone is up to 30 metres thick and contains three coal units. The basal unit occurs directly on or near the Dwyka diamictite and is referred to as the No. 1 Coal Unit. This unit is only present in the deeper valleys and is not present over the entire field. The seam varies in thickness up to 5 metres with an average of 3 metres. It is frequently separated by sandstone and grit partings into two or three coal seams. The parting between the basal split (1A seam) and the middle split (1B seam) varies between 0 and 3,5 metres while the parting between the middle and upper splits (1B seam and 1C seam) ranges up to 1.7 metres.
The parting between No. 1 Coal Unit and No. 2 Coal Unit varies between 0 and 2,2 metres and, where it occurs includes a conglomerate believed to be of fluvioglacial origin. No. 2 Coal Unit is generally divided into two seams by a brown mudstone layer up to 1,5 metres thick. Each of the two coal seams in this unit is up to 8 metres thick.
The No. 3 Coal Unit consists of one seam that varies in thickness from 0 to 5 metres. This seam is present over most of the coalfield at a depth of 60 metres in the north and 200 metres in the south. The parting between Coal Units No. 2 and No. 3 has an average thickness of 13 metres.
3.13.3.11. SOUTPANSBERG COALFIELD
The Soutpansberg Coalfield is made up of the Western, Central and Eastern Soutpansberg Coalfield.
These coalfields are intermittently developed over a distance of upwards of 300 km from the Magalakwena and Limpopo Rivers in the west to the Pafuri area of the Kruger National Park in the east in Northern Province. While three separate coalfields have been nominated there are four separate identifiable areas, a western shallow area, a near western deep area, a central shallow sector, and an eastern shallow zone. The eastern zone extends into the northern part of the Kruger National Park.
Regionally the coal occurrences in the field are inconsistently developed. Every occurrence, however, is a bright coal/carbonaceous mudstone association forming the composite seams which are typical of the Northern Province.
126 3.13.3.12. SOUTH RAND COALFIELD
The South Rand coalfield is located in southern Mpumalanga and covers an area of approximately 600 sq. km .
The coalfield is an embayment of Karoo sediments on the northern margin of the Karoo Basin and is flanked by rocks of the Venteradorp and Witwatersrand groups. It occurs within a large, deep, southerly trending palaeovalley stretching from Heidelberg in the north to the Vaal Dam in the south.
In the basin, the Vryheid Formation is composed of sandstones, shales and mudstones in varying proportion with occasional conglomerate lenses, which may occur within the coal seams. The upper half of the sequence consists of shale and siltstone and the lower is predominantly sandstone. Conglomerate beds occur along the southern margin. The coal zone ranges from a composite 25 metre seam to thin coal stringers. Shales form the roof of the coal seam in the centre of the basin while around the perimeter the roof is composed of sandstone. Fluvial erosion at the basin edge has resulted in scouring and thinning of the seam. The depth of the coal zone averages about 200 metres.
3.13.3.13. FREE STATE COALFIELD
This coalfield is located in the north western Free State with a southern limit based on the possible limits of coal deposition some 50 km south of Welkom. To the east, the field adjoins the Vereeniging-Sasolburg coalfield. It covers about 15 000 sq. km of gently rolling countryside bounded to the north and north west by hills of the Ventersdorp, Transvaal and Witwatersrand Formations.
Rocks of the Karoo Sequence were deposited on a fairly rugged glacially incised Pre-Karoo basement. The Karoo sediments thicken markedly from Vierfontein in the north to Welkom in the south, with an increasing amount of Upper Ecca shale of the Volksrust Formation towards the south and Beaufort group silty shales with minor sandstones in the most southerly areas.
Dolerite sills are common throughout the area and the maximum thickness recorded is approximately 150 metres.
127 Two coal seams, named either the Top and Bottom, or the Upper and Lower, occur within the coalfield but over the greater part of the area only one of these is usually sufficiently well developed to warrant exploitation. In addition the bottom seam splits, especially in the Welkom area. The Bottom seam has a wider distribution than the Top seam and is the seam being mined at the Vierfontein colliery and is also the seam forming the bulk of the reserves at Welkom.
The Bottom seam is up to 2,5 metres thick at Vierfontein and is typically dull-banded coal with some bright coal stringers. Rarely, bands of cannel coal occur. At Welkom the seam is dull to shaly with shale partings. Here the seam is up to 8 metres thick. Approximately 70% of the reserves at Vierfontein and Welkom are contained in this seam.
The Top seam is usually less than 2 metres thick and consists mainly of lustrous coal with bright coal stringers. It is of slightly better quality than the Bottom seam.
Occurrences of the Top seam are sporadic but it is developed at Mirage Siding and in pockets in the Welkom area.
3.13.3.14. SPRINGBOK FLATS COALFIELD
This is a large coalfield with approximate dimensions of 160 km by 30 km. It lies along a southwest to northeast axis to the north and north east of Pretoria. Stratigraphically the single coal zone is located between mudstones of the lower Beaufort Group of the region and fine- grained sandstone and shaly sandstone containing some shales and siltstones. The latter beds are probably equivalent to the Vryheid Formation of the Karoo sequence. The floor of the coal basin is composed of granites and felsites of the Bushveld Complex. The northern and north western boundaries of the basin are fault controlled while along the western, southern and south eastern margins of the basin the limits have been defined by the levels of erosion and the degree of recession of the rocks in these areas.
3.13.3.15. LIMPOPO COALFIELD
This coalfield lies along the border of Northern Province adjacent to the Limpopo River. The reserves are remote with little developed infrastructure. The main interest in the area lies in the opportunity to wash a blend coking coal component from the raw coal.
128 The coals of the Limpopo coalfield are contained within Karoo sediments along the southern margin of the Tuli Basin and extend across the Limpopo River into both Botswana and Zimbabwe. The age of the sediments is generally considered to be Upper Ecca. While the coalfield covers some 1 100 sq. km in the Northern Province, mineable coal is expected to be limited to as little as 10% of this area under present mining technology. The area of interest is in the southeast sector of the basin approximately 70 km west of Messina.
3.13.4. COAL PRODUCTION
In 1998 a total of 289 479 kilotons of run of mine coal was produced. Saleable production increased from 221 640 kilotons in 1998 to 224 000 kilotons in 1999.
3.13.5. LOCAL CONSUMPTION
3.13.5.1. BITUMINOUS COAL CONSUMPTION
Despite the fact that the Eskom offtake dropped dramatically in 1998 to only 87,225 million tons (91,27 mtpa in 1997), bituminous coal consumed in power generation decreased from 92,97 mtpa in 1997 to 89,44 mtpa in 1998.
Sasol increased consumption from 44,33 mtpa in 1997 to 54,22 mtpa in 1998. As a result, Sasol purchased an estimated 12,0 million tons from other sources in 1998.
Under the small consumers, coal used in the following industries increased during the year:
Mining, increased from 1,25 million tons to 1,52 million tons.
Chemical industries (excluding Sasol) increased from 1,25 million tons to 1,96 million tons.
Cement industry increased from 1,00 million tons to 1,08 million tons.
Brick and tiles increased from 0,07 million tons to 0,17 million tons.
However, coal bought by Merchants dropped from 5,38 million tons in 1997 to 4,59 million tons in 1998. Mainly as a result of the very mild 1998 winter and bituminous coal used in town gas production dropped from 0,56 mtpa to 0,04 mtpa during the review period. (South African Coal Report, 1999: 15)
129 3.13.5.2. RIIETALLURGICAL COAL CONSUMPTION
Metallurgical coal consumption, including anthracite used in the metallurgical process, increased from 5,404 million tons in 1997 to 5,911 million tons in 1998.
Metallurgical coal used by lscor dropped only slightly from 3,380 mtpa in 1997 to 3,161 mtpa in 1998, as a result of the closure of the Corex Plant at the Pretoria Works during the second half of the year.
Met coal used in other industries increased from 0,896 mtpa in 1997 to 1,413 mtpa in 1998.
In the Iron and Steel sector, consumption increased from 0,490 mtpa in 1997 to 1,084 mtpa in 1998. (South African Coal Report, 1999: 16)
3.13.5.3. ANTHRACOTE CONSUMPTION
During 1998 local anthracite consumption dropped by almost half, from 906 kilotons in 1997 to 526 kilotons in 1998:
Richards Bay Minerals and Namakwa Sands increased the import of high-grade anthracite from Vietnam, resulting in a drop-off of anthracite consumed in the metallurgical processes.
Merchant's offtake dropped from 167 kilotons in 1997 to only 88 kilotons in 1998. (South African Coal Report, 1999: 18)
130 TABLE 3.39. ANNUAL SALEABLE PRODUCTION, LOCAL CONSUMPTION AND EXPORTS KILOTONS
DESCRIPTION 1993 1994 1995 1996 1997 1998
SALEABLE PRODUCTION
TOTAL PRODUCTION (000'S) 184 199 195 805 206 205 206 362 221 640 224 002 ANTHRACITE (000'S) 3 090 2 280 2 136 2 466 2 660 1 779 STEAM COAL (000'S) 181 109 193 525 204 069 203 896 218 980 222 223
LOCAL CONSUMPTION
STEAM COAL CONSUMPTION STEAM COAL (000'S) 131 480 138 294 152 644 145 867 156 258 165 306 RAND VALUE (000'S) 5 102 814 5 441 139 6 536 233 6 700 125 7 422 498 8 590 576 RAND/TON F.O.R. 38.81 39.34 42.82 45.93 47.50 51.97
ANTHRACITE CONSUMPTION ANTHRACITE (000'S) 1 003 530 524 488 907 527 RAND VALUE (000'S) 109 797 79 101 91 836 98 215 153 825 126 135 RAND/TON F.O.R. 109.47 149.25 175.26 201.26 169.60 239.35
TOTAL CONSUMPTION ALL COAL (000'S) 132 483 138 824 153 168 146 355 157 165 165 833 RAND VALUE (000'S) 5 212 611 5 520 240 6 628 069 6 798 340 7 576 323 8 716 711 RAND/TON F.O.R. 39.35 39.76 43.27 46.45 48.21 52.56
EXPORTS
TOTAL BITUMINOUS COAL TONS (000'S) 51 360 52 366 57 659 58 700 61 658 65 714 RAND VALUE (000'S) 4 338 613 4 528 405 6 186 359 7 708 608 9 038 844 9 574 710 RAND/TON F.O.B. 84.47 86.48 107.29 131.32 146.60. 145.70
STEAM COAL TONS (000'S) 49 269 50 515 55 533 56 842 59 971 63 787 RAND VALUE (000'S) 4 057 368 4 282 024 5 880 555 7 391 869 8 745 571 9 208 217 RAND/TON F.O.B. 82.35 84.77 105.89 130.04 145.83 144.36
LOW ASH COAL TONS (000'S) 2 091 1 851 2 126 1 858 1 687 1 927 RAND VALUE (000'S) 281 245 246 381 305 804 316 739 293 273 366 493 RAND/TON F.O.B. 134.50 133.11 143.84 170.47 173.84 190.19
ANTHRACITE TONS (000'S) 2 090 2 225 2 016 2 204 2 230 1 326 RAND VALUE (000'S) 258 293 284 093 292 428 403 030 534 796 263 571 RAND/TON F.O.B. 123.59 127.68 145.05 182.86 239.82 198.77
TOTAL EXPORTS TONS (000'S) 53 450 54 591 59 675 60 904 63 888 67 040 RAND VALUE (000'S) 4 596 906 4 812 498 6 478 787 8 111 638 9 573 640 9 838 281 RAND/TON F.O.B. 86.00 88.16 108.57 133.19 149.85 146.75
SOURCE: South African Coal Report, 1999: 19
131 TABLE 3.40. LOCAL SALES FOR THE YEAR 1998
DESCRIPTION LOCAL SALES LOCAL SALES LOCAL SALES MASS VALUE FREE ON RAIL
(TONS) (RANDS) (US$) (RAND/TON) (US$/TON)
ANTHRACITE
POWER GENERATION 907 28 820 5 282 31.78 5.82
Other Power Generation 907 28 820 5 282 31.78 5.82
INDUSTRY 438 533 110 845 853 20 316 322 252.77 46.33
Iron & Steel 31 195 8 446 107 1 548 040 270.75 49.62 Iscor Iron & Steel Metallurgical 222 204 60 326 944 11 056 991 271.49 49.76 Chemical 73 776 23 842 657 4 369 988 323.18 59.23 Cement & Lime Other Industries 111 358 18 230 145 3 341 302 163.71 30.01
OTHER 87 764 15 260 675 2 797 045 173.88 31.87
Agriculture Transport Merchants & Domestic 87 764 15 260 675 2 797 045 173.88 31.87
TOTAL 527 204 126 135 348 23 118 649 239.25 43.85
BITUMINOUS
POWER GENERATION 93 261 647 3 852 318 286 706 070 067 41.31 7.57
ESKOM 91 048 838 3 748 762 021 687 089 813 41.17 7.55 Other Power Generation 2 212 809 103 556 265 18 980 254 46.80 8.58
INDUSTRY 65 520 691 4 259 794 862 780 754 190 65.01 11.92
ISCOR 3 168 263 624 127 414 114 392 854 196.99 36.11 Iron & Steel 1 084 055 88 349 336 16 193 060 81.50 14.94 Metallurgical 1 412 992 143 865 828 26 368 370 101.82 18.66 Brick & Tile 174 684 5 493 335 1 006 843 31.45 5.76 Chemical 1 961 854 132 631 413 24 309 277 67.61 12.39 Cement & Lime 1 086 411 71 733 346 13 147 607 66.03 12.10 Gas 37 171 1 518 388 278 297 40.85 7.49 Other Industries 2 373 287 214 003 655 39 223 544 90.17 16.53 Synthetic Fuels 54 221 974 2 978 072 147 545 834 338 54.92 10.07
MINING 1 517 076 86 657 658 15 883 002 57.12 10.47
Gold Mines 48 747 6 518 720 1 194 780 133.73 24.51 Other Mining 1 468 329 80 138 938 14 688 222 54.58 10.00
OTHER 5 076 897 399 120 700 73 152 621 78.62 14.41
Agriculture 232 118 23 579 306 4 321 720 101.58 18.62 j Transport 23 387 1 904 101 348 992 81.42 14.92 Water 234 796 17 108 783 3 135 774 72.87 13.36 Merchant & Domestic 4 586 596 356 528 510 65 346 135 77.73 14.25
TOTAL 165 376 311 8 597 891 506 1 575 859 880 51.99 9.53
TOTAL COAL 165 903 515 8 724 026 854 1 598 978 529 52.58 9.64
EXCHANGE RATE (R/US$) 5.4560
132 3.14.6. EXPORTS
3.14.6.1. SOUTH AFRICA AS A WORLD SEABORNE STEAM COAL EXPORTER
In 1998 the world seaborne steam coal trade grew by 9,7 million tons, from 279,3 million tons in 1997 to 289,0 million tons in 1998. Of this South Africa exported 60,6 million tons making it the second largest exporter of steam coal after Australia. South Africa is predominantly a steam coal exporter, with some grades of coal being used in the metallurgical coal market.
TABLE 3.41. SEABORNE STEAM COAL TRADE
EXPORTERS 1993 1994 1995 1996 1997 1998
SOUTH AFRICA 46.1 49.5 55.6 56.4 57.7 60.6 AUSTRALIA 57.6 59.4 62.1 63.7 73.6 83.1 INDONESIA 18.6 25.4 31.3 36.4 43.0 46.4 COLOMBIA 17.4 17.5 18.7 25.1 27.2 28.6 CHINA 15.5 20.0 24.1 24.4 26.1 25.8 POLAND 10.9 15.2 13.0 14.1 15.9 13.5 USA 18.6 17.0 28.2 28.2 18.8 13.4 CANADA 4.2 4.5 5.4 6.5 6.1 5.7 OTHERS ' 14.6 11.6 10.9 9.3 10.9 11.9
SEABORNE TRADE 203.5 220.1 249.3 264.1 279.3 289.0
(ABARE, 1999)
3.14.6.2. SOUTH AFRICAN COAL EXPORTS BY COAL TYPE
Coal exports from South Africa have continued to grow throughout the 1990's from only 47,5 mtpa in 1989 to 67,04 mtpa by 1998, resulting in an average growth rate of 4,1% /annum.
The main growth has taken place in steam coal exports, increasing from 56,846 mtpa in 1997 to 60,571 mtpa in 1999.
Metallurgical coal exports saw a small decrease from 5 751 kilotons in 1997 to 5 722 kilotons in 1998.
Anthracite exports dropped almost 1,0 million tons in 1998 (from 2 230 kilotons in 1997 to 1 326 kilotons in 1998).
133 TABLE 3.42. SOUTH AFRICAN COAL EXPORTS BY COUNTRY - 1989 TO 1998
(Includes coking coal, steam coal and anthracite) MILLION TONS
IMPORTING COUNTRIES 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
EUROPE 20.6 24.1 26.3 28.6 28.0 30.6 31.6 32.1 33.1 39.9
MEDITERRANEAN 12.1 12.7 13.7 12.9 11.1 11.9 12.9 10.1 8.7 12.8 - BULGARIA 0.1 0.1 0.2 0.1 0.1 0.0 0.3 - CROATIA 0.1 0.1 0.1 0.0 0.0 0.1 0.0 - GREECE 0.6 0.5 1.2 0.8 0.9 1.0 0.4 0.3 0.7 0.8 - ITALY 4.9 5.0 5.0 3.7 2.1 2.9 3.8 3.3 2.9 4.0 - MALTA 0.2 0.3 0.2 0.0 0.0 0.0 0.0 - PORTUGAL 1.6 2.5 2.6 1.7 2.3 2.4 2.3 1.6 1.4 1.8 - SPAIN 5.0 4.7 4.9 6.3 5.3 5.1 6.3 4.8 3.7 5.8
WESTERN EUROPE 8.5 11.4 12.6 15.7 16.9 18.7 18.7 22.0 24.3 27.1 - AUSTRIA 0.1 0.1 0.0 0.0 0.0 0.0 0.0 - BENELUX 3.4 4.3 4.4 3.7 3.6 3.0 3.9 2.9 3.4 3.9 - DENMARK 0.0 0.0 0.0 0.5 3.3 3.1 3.8 5.3 5.2 2.4 - EIRE 0.1 0.1 0.1 0.1 0.2 0.6 0.7 0.7 0.5 0.5 - FINLAND 0.3 0.0 0.1 0.3 0.0 - FRANCE 0.9 0.7 0.9 2.6 2.3 2.1 1.7 2.6 2.2 4.6 - GERMANY 2.6 4.6 5.5 6.0 4.6 6.1 4.8 5.2 6.9 8.1 - HOLLAND 1.1 1.4 1.1 1.7 1.8 2.5 3.2 4.4 4.4 5.3 - NORWAY 0.1 0.0 - ROMANIA 0.1 0.0 - SWEDEN 0.2 0.0 0.0 0.0 0.0 - U.KINGDOM 0.4 0.3 0.6 0.9 0.8 0.5 0.5 0.7 1.1 2.4 - SWITZERLAND 0.1 0.2 0.3 0.1 0.1 0.1 0.0
MIDDLE EAST 3.4 3.3 3.3 3.7 4.3 3.8 4.5 4.7 6.0 5.3 - ISRAEL 2.3 2.2 2.6 3.3 3.2 3.3 3.9 4.3 4.6 4.6 - LEBANON 0.1 0.0 0.0 - SAUDI ARABIA . 0.1 0.0 0.0 - TURKEY 1.1 1.1 0.7 0.4 1.1 0.5 0.6 0.3 1.4 0.7
FAR EAST 18.7 19.6 16.1 17.4 19.4 18.4 21.0 20.3 19.6 16.0 - CHINA 0.2 0.8 0.7 1.0 0.5 - HONG KONG 4.9 3.2 3.0 3.3 4.0 2.4 3.1 1.7 0.8 0.3 -INDIA 0.3 0.5 1.2 2.0 3.0 - INDONESIA 0.3 0.3 0.0 - JAPAN 4.9 5.2 5.2 . 6.1 4.9 6.3 7.0 5.6 5.1 4.2 - MALAYSIA 0.3 0.0 0.0 0.0 0.0 - NEW CALEDONIA 0.1 0.0 0.0 0.0 0.0 - PHILIPPINES 0.1 0.3 0.0 - S.KOREA 4.0 5.7 3.3 2.8 4.5 4.1 5.1 5.2 5.1 4.2 - TAIWAN 4.9 5.5 4.6 5.2 6.0 4.7 4.5 5.5 5.1 3.7
AMERICAS 2.0 2.2 1.6 0.6 1.4 2.0 2.0 2.6 2.7 3.4 - ARGENTINA 0.3 0.5 0.7 0.8 0.3 0.4 - BRAZIL 0.4 0.4 0.4 0.6 1.0 1.3 1.3 1.8 2.4 2.9 - CANADA 0.8 0.9 0.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 - CHILE 0.8 0.9 0.6 0.0 0.0 0.0 0.0 0.0 0.0 0.0 - USA 0.0 0.0 0.0 0.1 0.2 0.0 0.0 0.0 0.0
AFRICA 0.0 0.0 0.0 0.0 0.4 0.7 0.6 1.2 2.5 2.6 - KENYA 0.1 0.1 0.3 0.1 0.1 0.1 - MOROCCO 0.1 0.4 0.1 0.9 2.0 2.2 - NAMIBIA 0.2 0.2 0.1 0.1 0.2 0.1 - MAURITIUS 0.1 0.1 0.3 0.2
TONNES NOT ALLOCATED 2.8 1.1 2.7
TOTAL EXPORTS 47.5 50.3 50.0 50.3 53.5 55.5 59.7 60.9 63.9 67.0
SOURCE: South African Coal Report, 1999: 34
134 3.14.6.3. SOUTH AFRICAN COAL. EXPORT PROSPECTS
Relatively low production costs in South Africa are expected to ensure that its producers maintain their share of world thermal coal trade over the next seven years, increasing their thermal coal exports to a projected 78 million tons in 2005.
TABLE 3.43. SEABORNE STEAM COAL SUPPLY
REGIONS ACTUAL FORECAST 1997 1998 1999 2000 2005 INCREASE/ DECREASE
South Africa - Market share 20.35 20.42 19.35 19.58 19.90 -0.36 South Africa 58.00 59.00 60.00 65.00 78.00 4.60
Australia 74.00 83.00 88.00 92.00 115.00 5.51 Canada 6.00 4.00 3.00 5.00 5.00 3.57 USA 27.00 22.00 20.00 19.00 21.00 -0.65 Poland 19.00 19.00 19.00 18.00 14.00 -3.76 China 24.00 21.00 31.00 35.00 50.00 19.73 Indonesia 38.00 41.00 46.00 50.00 54.00 4.53 Colombia 26.00 26.00 26.00 31.00 42.00 8.79 Russia 11.00 11.00 11.00 14.00 14.00 3.90 Venezuela 4.00 4.00 4.00 4.00 7.00 10.71 Other 27.00 20.00 23.00 22.00 15.00 -3.57
Total Demand . 314.00 310.00 331.00 355.00 415.00 4.84
Seaborne 285.00 289.00 310.00 332.00 392.00 5.09
(ABARE, 1999)
For South Africa to continue increasing bituminous coal exports in the long-term, it will be necessary to increase market share into the Pacific Rim and Asian Countries, where substantial growth is expected during the next decade.
Announced plans in Japan show that twenty one coal-fired units at utilities and thirteen independent power project units are planned to come on stream by 2004.
South Korea's fourth long-term power development plan calls for thermal coal consumption for electricity generation to grow by around 6% a year to 2005.
Chinese Taipei's thermal coal imports are also expected to expand despite increasing environmental concerns. Independent Power Producers will finance growth in coal-fired electricity generation from 1999. Seven units will be commissioned by the year 2004.
135 Thermal coal imports have increased rapidly in India in the past three years and it is expected that increasing volumes of will he required in the next five years.
Western Europe's consumption has been fairly constant in the 1990's and only moderate growth is expected in the next 5 years.
TABLE 3.44. SOUTH AFRICA PROJECTED EXPORTS OF BITUMINOUS COAL TO 2005
REGIONS 2000 2005
Million Tons Low High Low High
North Asia 10.69 15.16 14.75 23.00 Other Asia 3.60 4.65 3.10 7.70 European Union 31.55 40.20 34.65 41.90 Other Europe 0.45 0.90 0.70 1.40 Middle East/Africa 5.25 6.40 5.20 6.38 America/Pacific 3.60 4.30 3.70 5.30
RSA - TOTAL BITUMINOUS PROJECTIONS 55.14 71.61 62.10 85.68
The limiting factor of the South African coal export industry has always been the export port capacity.
If this situation is not rectified, South Africa will continue to loose market share to Colombia, Venezuela and the USA in Europe and to Australia and Indonesia in the Far East. Most of the above countries are planning and are in fact busy with mine and port expansions and if South Africa do not expand port capacity accordingly, they will loose market share during the next decade.
With all of the planned expansions that are presently being discussed and by setting realistic targets for the Maputo Terminals and the Port of Durban, the South African coal industry could have the coal export terminal capacity of 93.10 mtpa by 2005.
This capacity is however, dependent on several important decisions being taken.
The Richards Bay Coal Terminal capacity must be increased to 72.0 mtpa by 2005.
136 The proposed South Dunes Coal Terminal does go ahead at a capacity of 7.5 mtpa by 2002, reaching full capacity of 12 mtpa by 2006.
The agreed refurbishment programmes for the Maputo Corridor, Maputo harbour and the Matola Terminal are in fact carried out and the RSA exporters start moving coal out of these facilities once again, increasing exports to 3.3 mtpa by 2000 and 6.6 mtpa by 2005,
The BMA continues the refurbishment programme being undertaken and the Crane Berths continue to load about 250 000 tpa, then Durban capacity will be maintained at 2.5 mtpa by 2000 and 3.0 mtpa by 2005.
TABLE 4.45. TOTAL PORT CAPACITY BY 2005
Kilotons 1999 2000 2001 2002 2003 2004 2005
RICHARDS BAY TERMINALS 65.00 66.00 67.00 75.50 77.50 81.25 83.25 Richards Bay Coal Terminal 65.00 66.00 67.00 68.00 69.00 70.00 72.00 South Dunes Coal Terminal 0.00 0.00 0.00 7.50 8.50 11.25 11.25 MAPUTO TERMINALS 2.41 3.25 4.25 5.25 6.25 6.75 6.85 Matola Terminal 2.20 3.00 4.00 5.00 6.00 6.50 6.60 McMyller Terminal 0.21 0.25 0.25 0.25 0.25 0.25 0.25 DURBAN TERMINALS 2.25 2.55 2.75 3.00 3.00 3.00 3.00 Bluff Mechanical Appliance (BMA) 2.00 2.30 2.50 2.75 2.75 2.75 2.75 Portnet crane berths 0.25 0.25 0.25 0.25 0.25 0.25 0.25
TOTAL PORT CAPACITY 69.66 71.80 74.00 83.75 86.75 91.00 93.10
By 2005 the South African Shippers may have the port capacity to move 93.1 mtpa, but whether they will be in a position to fully utilise this capacity is questionable. For example, if coal prices continue to decrease during the next several years, the South African Shippers will not continue to expand export production to this level.
3.13.7. CONTRIBUTION OF COAL TO THE ECONOMIC AND REGIONAL DEVELOMPENT
3.13.7.1. ECONOMIC GROWTH
South Africa has a modern, well diversified economy in which agriculture, mining, secondary industry (manufacturing, electricity, gas, water and construction), commerce and a broad structure of service establishments contribute to the wealth of the nation. The market driven and export
137 oriented economy is based on private enterprise and ownership. The industrial sector is seen as the major generator of economic growth in the country.
South Africa's economic potential is immense. As the country sheds its apartheid legacy and associated isolation, its role as an investor in the region and beyond is expanding. (South African Development Community, 1997: 8.5.)
3.13.7.2. MINING CONTRIBUTION TO THE ECONOMY
South Africa is one of the world's richest countries in terms of minerals.
The country's mineral wealth is found in diverse geological formations, some of which are unique and very extensive by world standards. The most important of these is the Witwatersrand basin, which yields approximately 98 percent of South Africa's gold output. Another is the Bushveld Complex, occupying about 50,000 sq. km in the NorthWest and Mpumalanga provinces. Platinum, chromium, vanadium, nickel, fluorspar and andalusite are some of the important minerals found in and around the area. Manganese ore is found in the Northern Cape, and other industrially important metals and minerals include antimony, asbestos, diamonds, coal phosphates, iron ore, lead, zinc, uranium, vermiculite and zirconium.
Coal remains South Africa's second largest export earner (second only to gold) with exports at 67,04 million tons in 1998, earning a total of R9,838 billion in 1998. In comparison, in 1997 a total of 63,888 million tons of coal was exported earning the country R9,573 billion. (South African Development Community, 1997: 8.12.)
3.13.7.3. ELECTRICITY CONTRIBUTION TO THE ECONOMY
The National Electricity Regulator was established in 1995, as an independent statutory body to control electricity supplies and makes it more efficient. All generators, transmitters and distributors of electricity — including State departments, local and regional government bodies and Eskom — are required to operate with a licence.
South Africa is committed to increase access to electricity from the present 50 percent to 72 percent of all households by the year 2000.
138 Most electricity is generated in coal-fired power stations. Eskom has 19 power stations and distributes its electricity through a national power system comprising more than 241 000 kilometres of power lines, which include all its overhead lines, and some 5 000 kilometres of cables.
South Africa supplies more than half of all electricity generated in Africa. (South African Development Community, 1997: 8.16.)
139 SOUTH AlFRIICAN COALFIELDS MAP 113.
COALFIELD BOTSWANA Witbank Highveld Eastern Transvaal Utrecht Niip River Vryheid Vereeniging - Sasolburg Waterberg Soutpansherg 0 Potgietersrus Nongoma Kangwane Thabazirnbi O . 12)South Rand 13)Orange Free State 14)Springbok Flats 15)Limpopo
MPUMALANGA Belfast
NORTH WEST PROVINCE Vereenigi
yolks 4. .NeWcastl Vryheid
FREE STATE @Ladysmith
Molteno0 KEY INTERNATIONAL BORDERS IA PROVINCIAL BORDERS EASTERN CAPE
140 4. ELECTRICITY EXPORTS
4.1. AFRICAN COAL EXPORTS
Having looked at the coal reserves in Africa the possibility of exporting coal, excluding countries such as Botswana, Nigeria, Mozambique, Zimbabwe and South Africa are bleak. The main reasons for this has been.
Land locked countries that are vast distances from the coast. a Poor railway and port infrastructure.
Poor coal qualities in many of the countries.
The down turns in the coal industry at this moment in time.
The strict environmental actions being implemented at present in most first world countries.
Looking at the above limitations one may think that there is no future in African coal reserves outside the borders of their country. At this point I would like to consider the possibilities of exporting electricity from Africa and therefore the indirect exportation of coal.
4.2. SOUTHERN AFRICAN ELECTRICITY GRID NAP 14)
The South African electricity grid is made up of a vast variety of different generating capacities. This capacity includes thermal, hydro and nuclear power stations. The thermal capacity predominantly consists of coal fired power stations.
At this point in time the grid currently extends from Cape Town to Nairobi as shown in Map 14. Currently electricity being generated in one country is being consumed in another. For example a coal fired power station in Mpumalanga (South Africa) may be supplying electricity to Gaborone (Botswana). In the long term the Southern African grid may be extended to include the entire Africa.
141 SOUTHERN AFRICAN ELECTRICITY GRID MAP 14. UGANDA GABON Owen plls KENYA
DEMOCRATIC REPUBLIC Nairobi CONGO OF CONGO R1VANIA Arushad Kinshasa Mombasa BURUNDI ZANIA Cabinda Lukuga! 0 N. Singida Panganio
Mtera Dar es Salaam Ki to atbe 0 Ubungo Luanda Mw ------4L, Kolwezi A-1\ Kihansi 0 Cambambe Lihasi Capanda Kariivia .0 Kasjma i ( Lobito ANGOLA kitvVe • -Perlsulo O Lomatun ZAMBIA Namibe ••••"*..-Cabora MOZAMBIQUE Lusaka)) Kafii, • Bassa MePan'll 6 Matala Uncual Kafire,0° z•67e.71--. qkula A&B 110 kV ---scligj, Tyre. Tedzani 9\dKariba ikapichira BinduraN17% ‘ — N...._...... _____:::1,Y14..o.ria Falols.„, __247( \S&N t /Blantyre Ruacana — ,- 'K. Pgatoka % '... /' / i HiAnge 3:.:0 kV 0 Harare., (utAeM r ZIMBABW E '''..41, ' 'di. Insukanili NAMIBIA cpMaTV-1-a••...,_ f,"" : Beira Francistown Bulawayo ---- j Pande Gas ibk.oj _e•it4It-----...... / Fields Walvis Bay 4; .Windhoek BOTSWANA Morupule /Thikwe ..i. /,_, OLouis •N / Trich, . /4:e." INDIAN OCEAN mb Gaborone itskop Komatiporj 1 Maputo ! • etovia Luderitz APAP.YU:Z0' Of SWAZILAND o Kokerbbok Johanneso e OO Edwaleni 11 A- -4 132KV Kudu CCGT e ik• Kimberley KEY 0 engin% 7 INTERNATIONAL BORDERS Bloemfonteiti e16 —' TAN, Richards Bay Aggeneis • EXISTING GRID A LES Ovanderkloak than POSSIBLE FUTURE ATLANTIC OCEAN (SOUTH AF.RIC Gariep V GRID SYSTEM 0 HYDROELECTRIC POWER Koterg--- STATION East London O THERMAL POWER STATIONS Cape Town Port Elizabeth O NUCLEAR POWER STATIONS Palmiet Mossel Bay O FUTURE HYDROELECTRIC POWER STATION FUTURE THERMAL POWER STATION O INTERCONNECTION SUBSTATION 0 TOWN
142 4.3. ESKOM'S INVOLVEMENT IN THE AFRICAN ELECTRICITY GRID
Eskom is expanding is market throughout Africa. During 1998 Reuel Khoza, the Chairman of Eskom, visited a number of African countries with a view to promoting sustainable, long-term commercial initiatives in line with the 'African Renaissance'. Reuel Khoza said that Eskom's management team had established strong links with these countries for future commercial ventures. Eskom's technical expertise and financial strength, combined with its unique African knowledge and experience, makes it the logical choice for joint ventures and partnerships in many countries on the continent.
A memorandum of understanding has been signed with most of the African countries to foster co- operation. These long-term associations will enable all African electrical utilities to share Eskom's capabilities on a utility to utility basis.
Eskom has continued to participate actively in the maintenance and development of the Southern African Power Pool .(SAPP). This is the first step in creating a totally integrated electricity grid across the continent of Africa paving the way for enhanced co-operation and economic growth.
Eskom has been able to contribute to regional economic development through joint venture agreements such as. o The formation of MOTRACO — a joint venture company comprising Electricidade de Mocambique (EDM), Swaziland Electricity Board (SEB) and Eskom for the construction, ownership and operation of a 400 kV line that will supply electricity to MOZAL, a new smelter in Maputo, Mozambique. It is anticipated that supply will commence in the year 2001 and will require extensive co-operation between the partners. o A buy and Bank agreement entered into with the Zambian Electricity Supply Corporation (ZESCO) and SNEL, an electricity utility in the Democratic Republic of Congo (DRC) to trade electricity at different times of the day. Funds flowing from the venture will be used for the refurbishment of the badly damaged electrical infrastructure in the DRC.
(Eskom, 1998: 10)
143 4.4. THE AFRICAN ELECTRICY GRID
If these exciting prospects in the African electricity industry continue to prosper an African Electricity grid could very well be established. The advantages such as economies of scale, welfare improvements and economic growth throughout Africa could be unending.
As demand for electricity grows in Africa more power plants could come on stream. With an African grid in place power stations could simply be connected into this grid. Of these power stations a vast number could be coal fired power stations.
4.4.1. OVERCOMING EXPORTING COAL LIMITATIONS
Earlier in section 4 some of Africa's export coal limitations were listed. Some of these limitations can be overcome when brought in the context of an African electricity grid.
Land locked countries don't have to be near to the coast to be connected into the African Electricity grid.
If the electricity infrastructure is developed there is no need for improved rail and port infrastructure.
With new technologies being developed, extremely poor quality coals can still be burnt for electricity generation. Presently in South Africa representatives of Ingwe, Anglo Coal, Eskom, Chamber of Mines and the government are conducting a study to determined the feasibility of using low-grade discard coal as a fuel source. The study, which is to be completed by early next year, will be carried out by a number of United States based engineering consulting firms. The mothballed Komati power station is the location for the pilot project and fluidised bed combustion (FBC) boilers will be the technology used. The feasibility study will include discard coal identification and qualification, environmental assessment, techno-economic assessment of the FBC technology using discard coal for power generation and the generation of licensing requirements and plant permitting processes.
Environmental aspects will be limited to the country in which the coal fired power station is situated. In section 4.5. the possibility of the African grid being connected into other world grids will be looked at and these environmental aspects will be evaluated further.
144 4.5. ELECTRICITY GRIDS ACROSS THE GLOBE
Western Europe and the United States have extensive and efficient electricity grids in place. In Western Europe for example power stations in Germany are supplying electricity in Amsterdam and vice versa depending on demand. Environmental laws in Western Europe at present are tightening which has seen the stagnation in demand for coal.
4.5.1. KYOTO PROTOCOL TARGETS
On December 11, 1997, more than 160 countries adopted the text of the Kyoto Protocol to the UN Framework Convention on Climate Change (FCCC). The Protocol was opened for signature at UN Headquarters in New York on 16 March 1998 and many countries (including Finland) have since signed the Protocol, indicating their political commitment to seek ratification in accordance with their national constitutions and laws. The Protocol will enter into force following ratification by at least 55 countries accounting for at least 55% of 1990 industrialized-country CO2 emissions.
The Kyoto Protocol would require each industrialized country that ratifies it to limit its emissions of six greenhouse gases during the period from 2008 to 2012 to the levels set forth in Annex B to the Protocol. The overall objective is a reduction for these countries as a whole of at least 5% below the level of emissions in 1990. Individual country targets in Annex B range from:
An 8% reduction is required for EU countries and most other European countries (including Russia and Ukraine) to a return to 1990 levels.
An increase of up to 10% above 1990 levels is allowed for three countries (Norway, Australia and Iceland), due to special national circumstances in these countries.
The US target is a 7% reduction from 1990 levels and
Japan and Canada each pledged to a 6% reduction.
The targets cover six human-related greenhouse gases: CO, (from all sources), methane (CH4), nitrous oxide (N20), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF6). For the last three gases, which account for a very small proportion of total emissions, countries may choose either 1990 or 1995 as the base year for purposes of reduction commitments.
145 The Member States of the European Union will achieve their common target of an 8% reduction (92% of 1990 levels) jointly rather than individually, in accordance with Article 4 of the Protocol. This requires these countries to agree among themselves on how each individual country will contribute to the achievement of their common target. The burden sharing among EU Member States should also take into account differences in national circumstances among the Member States as specified by the Council Conclusions adopted by EU environment ministers in March 1997. (Coaltrans Conference, 1998)
In the long term I see Kyoto Protocol as an opportunity for the expansion of the African electricity grid (Assuming that an efficient African electricity grid is in place). With the African Electricity grid extended from Cape Town to Cairo the link to the Western European grid could be extended through the Middle East around the Mediterranean Sea.
Factors that contribute to the exports of electricity from the African grid to the Western European grid include.
As already mentioned the environmental laws within the first world countries will promote this initiative. If the price of electricity in Europe increases dramatically because of additional technologies being introduced to combat environmental degradation, the African/European grid extension could become a possibility.
At present Western Europe is trading some of its harsh gaseous emissions with Eastern Europe in an attempt to meet its Kyoto specification. Nevertheless it will reach a point when Eastern European countries can no longer afford them that luxury. By linking into an African/European grid the European countries can trade emissions with Africa as Kyoto's limits and expectations are not as stringed on third world developing countries.
The environmental aspect associated with coal has led to a greater demand for gas fired power stations in Europe. However despite the fact that recent gas discoveries have increased the world supply of gas reserves they can not compare with the vast coal reserves that exist. Therefore as gas becomes more expensive when compared with coal in the long term the African grid extension could once again be in the picture.
146 5. CONCLUSION
On the outskirts one gets the impression that coal in Africa, other than countries such as South Africa and less importantly Botswana, Nigeria, Mozambique and Zimbabwe, is a commodity with no real growth possibilities. Due to a number of limiting factors already discussed one would think that these impressions are valid. In the short to medium term I think that Africa, excluding South Africa, will experience no real growth in coal production, consumption and exports.
However in the long term, increasing the African coal parameters to include an African electricity grid, the coal market in Africa could come alive. Coal fired power stations would predominantly supply into this African grid. Eskom with its experience in Southern Africa could be the company at the foreground of such a grid. Coal consumption under these conditions throughout Africa would see tremendous growth.
Once an efficient African electricity grid is in place the possibilities of linking with the Western European electricity grid could also follow suit. This would result in the indirect exporting of coal from Africa. Kyoto Protocol, environmental aspects and growing demand for electricity could be the main reasons for this link to become a reality.
Therefore in the !Ong term coal in African countries could be part of some exciting ventures and play an extremely important part in world electricity markets.
147 APPENDIX 1. AFRICA - COAL RESOURCES/RESERVE SUMMARY (MILLION TONS)
Coalfields/ Coal Resources Summary Coal Reserves Summary COUNTRY Measures Total Total(insitu) Indicated Inferred Resources Mineable Recoverable Marketable Reserves
Botswana Morupule 8000 8000 Kgaswe/Morupule 1094 Mojabana 1295 Mmamabula Central 5175 3000 2400 Letlhakeng 3530 Dutlwe 2000 Total 21094 3500 2800 7000
Egypt Maghara 27 27 130 Ayun Musa 0 19 Buda-Thora 0 75 Total 25 27 224
Malawi Livingstonia CF 121 N.Rukuru CF 250 Nkana CF 85 Lengwe/Chiromo CF 10 Total 800 24 41 466
Morocco 70 56 204
Mozambique Moatize 245 200 186 417 Metangula Rule Chiomo Total 14000 245 200 186 417
Niger Anou-Araren CF 6 5 Solomi CF 64 51 Total 70 56 1500
Nigeria Enugu 54 200 Enugu 56 60 54 32 32 200 Benue 57 75 Kogi 73 250 Kogi 107 320 Enugu 20 30 130 Plateau 22 156 128 Bauchi 1360 107 Total 639 2191 2750 190 183 565
Swaziland Mpaka-Luluka CF Mhlume CF Maloma CF 19 Total 1000 550 5000
Tanzania Songwe Kiwira CF 35 Ketewaka Mchuchuma CF 187 Ngaka CF 100 Total 1800 200 160 322
Zaire Lukuga CF Luena CF Total 600 480 1000
Zambia Siankondobo CF 100 55 1000
Zimbabwe Wankie - Entuba 1400 2100 Lubimbi-Sengwa-Sessami 9400 23800 Tuli 30 120 Bubye 30 60 Sabi 300 570 Total 11160 26650
SOURCE: Barlow Jonker APPENDI X 2. AFRICA - COAL LOCATIONA ND INFRASTRUCTURE SU MMARY 0. M o .JOE ...) E Z 0 c 0. a) _ C a) State/ Basin/ Coalfields/ Location 3 CO U a. Jg 0. 1 Z' r ..- o 0 0 co CO CL d 1 - , .
COUNTRY Province Reg ion Measures District Transp. M ...... CD 0 (0.4. ,_
!Botswana Central Province Kalahari-Karoo Basin Morupule CF Central Region Palapye road and rail Richards Bay • _ Kalahari-Karoo Basin Kgaswe/Morupule CFs Central Region Kgaswe road and rail no export . • Kalahari-Karoo Basin Mmamabula Central CF Central Region I Mmamabula road and rail • no export I- 3 — 0
'Niger Anou-Araren South Central Region Anou-Araren CF SouthCe ntral Region Anou-Araren —. road and rail no export •
South Central Region Solomi CF South Central Region_ _ Solomi road and rail no export •
— I— - —. 0
u u o xa 2 CV pod 5 _
,
,
'Tanzania ce SW Tanzania Songwe Kiwira CF Mbeya Songwe Kiwira road and rail u u o a x .c tiod = 7 0 t •
SW Tanzania Ketewaka Mchuchuma CF Ruruma Ruhuhu road and rail rc c = 7 0 • •
[ STanzan ia Ngaka CF Ruruma Ruhuhu road and rail no export _ Cs4 co)
!Swaziland Eas t Swaziland N-S Coal Belt Mpaka-Luluka CF Eastern Region Manzini/Siteki .- road and rail no export .- • North Swaziland N-S Coal Belt Mhlume CF Northern Region Mhlume road and rail • • no export -. CD V el : East Swaziland N-SCoa l Belt Maloma CF Southern Region I Goleta road and rail Mupato andDur ban I Cs/ .-- C c O o a)
Malawi Northern Prov ince NorthMa lawi Livingstonia CF Northern Livingstonia road and rail V a) a x 1 4 Northern Province North Malawi N.Rukuru CF Northern Rukuru road and rail 6 s Northern Province North Malawi Nkana CF Northern Nkana road and rail no export a Southern Province Southern Malawi Lengwe/Chiromo CF Southern Chiromo road and rail e no export 0 0 !Morocco NE Morocco Jerada Basin Jerada CF a - N Jerada road and rail LC) iii iv, 8 k C) Co c cr) = & O cm a) a
Plateau Region South Nigeria Enugu CF road and rail Port Harcourt CA it
LLI c o a) a. a . x . . South Nigeria Okaba/Owukpa CF Plateau Region Okaba/Owukpa road and rail w .- x o . .
I CentralN igeria Lafia-ObiC F Plateau Region Lafia-Obi road and rail .- Central Nigeria Og boyoga CF Plateau Region Ogboyoga road and rail no export . CV U) s- .- . I Zaire Katanga Province Karoo Basin extens ion _ Lukuga C F Bas-Zeira Lukuga road and rail no export . Karoo Basin extension Luena CF Shaba Luena road and rail no export I )— Csi 0 m .c1 ..n 1 ,.. , .-- 0 2 E .• cr = a) - Tete Province Moatize Basin Moatize CF NW Region Moatize road/barge/rail IChinde Port Offshore •• 0 0.1 C N C N a) CO CO C N = E c o w x o . Zambia MidZa mbesi Valley Siankondobo CF Southern Region Siankondobo road/aerial ropeway/rail . OD 0 OGGG - Lo c) "4' 2 - Zimbabwe Southern Zimbabwe ZambesiRiv er Basin Wankie CF CD c al a) Wankie/Deka road and rail Maputo/Beira ul CO (0 a 0 Zambesi River Basin Sengwa CF Kariba Bingu road and rail .ct V' - - c; (71 Maputo/Beira Ul ZambesiRiver Basin _ubimbi/Dahlia/Hankano CF Hwange Dahlia road and rail Maputo/Be ira ,41 0 CO 0 - -. Ts) -1 U. ■ N 7 7 ZambesiRiver Basin Souther Area Z road and rail 4. Maputo/Be ira )— wi 5 . . Egypt NEEgy pt SanaiBas in Maghara CF N ESana i Por t Said road no export . SanaiBas in Ayun Musa C F Central Sanai Suez road . . no export
Sanai Basin Buda-Thora CF West Sanai Zafarana road no export . 1— 3 o
SOURCE: Barlow Jonker APPENDIX3. AFRICA - COAL QUALITY SUMMARY > 2 °Z.ti = -.. 0 1/1 CD
State/ Basin/ Coalfields/ Measures/Bed/ No. Seam depth/ Energy Classification/ Zis.17 V) V .... C'' COUNTRY Province Region Measures Group Seams thickness cover e gi (kcal/kg) Description (m) (m) (ad) CO CO T-- I 6 CO CO a) '9 v C') ,
- . Botswana Central Province Kalahari-Karoo Basin Morupule CF Ecca Group 0. 6-9. 5 27-38 high volatile bituminous I el co, Kalahari-Karoo Basin Kgaswe/Morupule CFs Ecca Group 2. 1-8. 7 27-36 I 0. 3-1 6662-6758 hig h volatile bituminous Kalahari-Karoo Basin Mmama bula Central CF Ecca Group 2-5. 4 27-33 0. 4 6448-7833 hig h volatile bituminous
I L Total —"--1 .- % V I Niger Anou-Araren South Central Region Anou-Ara ren CF high 3582 sub-bituminous South Central Region Solomi CF 21-31 7164 med volatile bituminous Total 0 r-- O a? N 0 1- N 2 1 . ) bituminous I Tanzan ia SW Tanzania Songwe Kiwira CF Karoo Deposits 0. 5 6 co ci .- N X .0 C .0 z 3 SW Tanzania Ketewaka Mchuchuma CF Karoo Deposits 23-31 5254-6448 me d volatile bituminous La N-
3 3 3 .03 STanzan ia Ngaka CF Karoo Deposits 22-30 501 5-6686 me d volatile bituminous I Total 0 Swaziland East Swaziland N-S Coal Belt Mpaka-Luluka CF Karoo Supergroup 3 0. 2-8. 5 200 11. 4 7180 anthra cite 0 V) North Swaziland N-S Coal Bett Mhlume CF Karoo Supergroup up to 6 0. 5-8 8. 5 71 64 an thracite N. 10 C? I N N- East Swaziland N-S Coal Belt Maloma CF I Karoo Supergroup I r 0. 6 7498 I anthracite I- 0 6 Lf) N s- m 0 Northern Province North Malawi Livingstonia CF 21 4490 su b-bituminous Northern Province North Malawi N. Rukuru CF 23. 5 4776 su b-bituminous Northern Province North Malawi Nkana CF 29. 3 2.2 4704 su b-bituminous Southern Province Southern Malawi Lengwe/Chiromo CF thick 14. 1 0. 3 3295 sub- bituminous I- 0 CO O 0 r.-. 2 v.- I Morocco NE Morocco Jerada Basin Jerada CF n o_ 6.7 7880 anthrac ite 1 CO 6 co U) 1- C .- -. ■ .. Nigeria Plateau Region South Nigeria Enugu CF I 44. 8 7880 high vol bitum inous I 6 N ..i 7 0
. South Nigeria Okaba/Owukpa CF 46-51 7236-7450 hig h vol bituminous co .- . . Central Nigeria Lafia-Obi CF 31. 7 <6450 hig h vol bitum inous ( high vol bitum inous CentralN igeria Ogboyoga CF I 41 I up to 2. 6 I 5500-7500 1 I Total t--- CD P N in N .-- ? Zaire Katanga Province Karoo Basin extension Lukuga CF 1 50114-5970 h igh volatile bitum inous 0 PI C ST N I ? Karoo Basin extension Luena CF u to 5 I 5970 hig h volatile bituminous Total t.- 6 q 0, ,-- I Mozambique Tete Province Moatize Basin Moatize CF up to 25 22-26 6300-7000 med volatile bituminous U) 0) r-- a (4 `CT sl- CO CO ,... as g I Zambia M id ZambesiVa lley Kazinze and Izuma Siankondobo CF up to 250 6 0. 7-3 bituminous .11 1"-- (4' CT) N LO N CO V c? C) ..- el O o a To I w 0 w N > a) Zimbabwe Southern Zimbabwe ZambesiRive r Basin Wan kie CF 0 2 = ca. 3-13 med volatile bituminous 2 I ; Zambesi River Basin Sengwa CF Karoo Sediments 6-12 high limited coking potential Ur) ll, a U, 0 0 0 ZambesiRive r Basin _ubimbi/Dahlia/Hankano C Karoo Sediments up to 1 2 high coking/steam-bitum inous c-, , Zambesi River Basin Lusulu CF Karoo Sediments 1 A high volatile steam coal I r-Tair"--1 I.:- N 6 ..-. a) W s 0) NE Egypt Sanai Basin Maghara CF 50. 7 3 7260 high vol bituminous 1- Sanai Basin Ayun Musa CF 500-600 35-47 1-4. 9 5325-6304 high vol bituminous V) 0 1" 0 Sanai Basin Buda-Thora CF 0. 4-1I 3988 su b-bituminous APP ENDIX4. AFRICA - MARKETABLE RESERVES/TONNAGE SUMMARY (MILLION TONS)
State/ Basin/ Coalfields/ Total Domestic It
alltY 0. 0 COUNTRY Province Region Measures Insltu Bitum inous Use Reserves Botswa na Central Province Kalahari-Karoo Basin Morupule CF local smetters/power stations none Kalahari-Karoo Basin Kgaswe/Morupule CFs 0 0 0 NI Kalahari-Karoo Basin Mmamabula Central CF 1 [ 2, 4001 Of CO 0 0 'Total 7, 000 2, 800 ul Niger Anou-Araren South Central Region Anou-Araren CF mine mouth power plant it) CD U. s- .- (/) 0 g E
South CentralReg ion , Lo V) ID .- ,— Lo 0 0 e- 1- 13 0
[Tanzania SW Tanzania Songwe Kiwira CF 35 mine mouth power plant none
cr .. . 3
SW Tanzania Ketewaka Mchuchuma CF] 187 rural industry none -0 in auou ..- 0 0 x .. 2 m c . 3 STanzan ia] Ngaka CF 1 CO 0 co 0 el N N 1- 1- 3 - 0
!Swaziland Eas t Swaziland NS Coal Belt Mpaka-Luluka CF domestic steel/cement/sugar North Swaziland NS CoalBe lt Mhlume CF domestic steeVcement/sugar small export to Sth Korea 0) .- East Swaziland11 NS Coal Belt Maloma CF dorr steet/cement/sugar 11 small export Europe/Brazil I r- 0) a, U) U) 0 'Tota l 5,000 Malawi Northern Province North Malawi Livingstonia CF 121 domestic industry none Northern Province North Malawi N. Rukuru CF 250 domestic industry none Northern Province North Malawi Nkana CF 85 domestic industry none s 0 , Southern Province]1 Southern Malawi Lengwe/Chiromo CF 1 - domestic industry F---- none 'Tr sr (0 CO 1,- 3 0 if) CO Morocco NE Morocco Jerada Basin Jerada CF 204 domestic industry exports CI el N Nigeria Plateau Region South Nigeria Enugu CF 200, power generation/steel/cement South Nigeria Okaba/Owu kpa CF 1 30 Central Nigeria Lafia-Obi CF 128 minor use as coking coal v- n r CentralNig eria 1 Ogboyoga CF - o 0 CO o co C) r- 1- 1.- 3 0 5651 1 small exports to other Africa I 'Zaire Katanga Province Karoo Basin extension Lukuga CF copper mining and processing
Karoo Basin extension Luena CF copper mining and processing 00' 0 1 L L CO 0 .7 W 1- 5 0 s CO CO .-- co CD - 'Mozambique ITete Province ] Moatize Basin Moatize CF 41 7 domestic industry India, Braz il, Europe u, U) 0 U. V" o 0 o U) N 2 2 .0 > . 0 *C1 N 1 C co E _ ,
p _ 'Zam bia Kazinze and Izuma 0 copper mining and processing none 3 ,c U) cn CD Col co WI 0 0 0 !Zimbabwe 6outhem Zimbabwe Zambesi River Basin Wankie CF -• power/coke/industry none Zambesi River Basin Sengwa CF 400 electricity generation none in N Zambesi River Basin Lubimbi/Dahlia/Hankano CF 20, 000 - 1 52 domestic power proposed exports C."; 0 0 0 C.1 0 ci 0 c.) U- - s to 0 D
Zambesi River Basin 1 3,0001 domestic power proposed exports c() (0 U) 0
!Total 30, 000 3, 1 52 power/mine mouth stations export to other Africa 1`... N Egypt NE Egypt Sanai Basin Mag hara CF 130 27 domesticJindusrty no export 0 V t7,' ir; -- ri E -.- CO s- c O 0 E 01 --. --,.. SanaiBas in Ayun Musa CF no export -0 1..... cf) 0) m Sanai Basin Buda-Thora CF .; no export 1,... o N 0 o css I 0 , 1- 3 0 -
224]
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