The construction of Zululand Anthracite Colliery's (ZAC) Mngeni shaft is progressing as planned, with the company set to deliver its first coal from the shaft by the end of October. To date, approximately 69,000 cubic meters of earth have been excavated for the project. Once operational, the Mngeni shaft will enable ZAC to increase its anthracite production from 180,000 to 240,000 tons per year at steady-state production levels.

The project is also expected to create approximately 120 jobs, incorporating current ZAC employees. ZAC's Mngeni shaft will exploit a high-seam resource, making mining more efficient compared to its low-seam Outcrop shaft. This expansion aims to offset the high operational costs associated with low-seam mining operations.

Key project milestones achieved so far include rock excavation, infrastructure construction, and the commissioning of essential systems for water management, electricity supply, and more. ZAC has invested R137 million in the shaft's construction, covering earthworks preparation, boxcut mining, infrastructure development, and the acquisition of new underground production equipment.

Remaining project milestones include accessing reserves, completing shaft and incline conveyor construction, and raising the vent shaft following the establishment of the shaft pillar.