Gugulethu Colliery's General Manager, Jarmi Steyn, asserts that the ongoing development of the greenfield Gugulethu Colliery project arrives at an opportune time, coinciding with burgeoning export prospects in emerging Asian markets for coal miners. She highlights the high-quality washed coal anticipated from this colliery, deemed well-suited for global markets.

Canyon Coal, a coal explorer, developer, and processor operating in Gauteng and Mpumalanga, facilitated the transition of the Gugulethu Colliery, formerly known as De Wittekrans, out of business rescue. Presently, the company is undertaking the project's development in two phases.

Steyn reports that the first phase involves establishing the opencast pit, an advanced-stage development consisting of three pits, with the smallest serving as an entry point to the underground section to be developed in Phase 2. Mining activities on the B and C seams have commenced, but coal extraction is pending construction completion. The target aims at achieving a monthly production rate of 200,000 tons.

Efforts have been coordinated to ensure a seamless shift from opencast to underground mining. Plans are set to initiate underground development within five years to coincide with opencast depletion in seven years, ensuring uninterrupted production.

Construction initiatives have commenced, including the installation of a 400 t/h processing plant equipped with a filter press for enhanced slurry processing. Additionally, infrastructure such as offices, changing rooms, and the access road to the processing plant is being established.

Canyon Coal's investment into Gugulethu Colliery, validated by President Cyril Ramaphosa's endorsement, demonstrates the company's commitment to new mining projects despite economic challenges. The project's rapid progress within a year is anticipated to alleviate unemployment in rural Mpumalanga.

Community engagement has been a focus, with initiatives like a community forum, local procurement events, and training programs for locals in mine operations. The company aims to start washed product production by Q1 2024, targeting export markets via the Richards Bay Coal Terminal and the Grindrod Terminal de Carvao da Matola port.

Procurement days have been organized to engage local businesses and entrepreneurs, emphasizing the importance of understanding procurement processes to capitalize on project-related opportunities, demonstrating Canyon Coal's dedication to community development and upliftment.