Hi allThis is a long read so sit down and open a bottle of...

Hi all

This is a long read so sit down and open a bottle of wine!

I have been looking at this lately the future need for coal in SA!

The future needs for coal in SA is in the Waterberg coal fields, The Waterberg is forecast to become the main source of coal in South Africa as existing operations age. It is estimated to hold some 50% of the country's remaining coal resources, much of it sitting relatively close to the surface.

“Waterberg vital statistics”

Dimensions
Stretches 40kms from N to S and 88kms E to W.
Extends westward into Botswana.

Geological Characteristics:
Ecca group of coal deposits.
75.7 billion tons of in-situ inferred resources (Upper and Middle Ecca)
More than 50% of the remaining coal reserves in SA.
Stratographic thinkness of 115 m (11 coal bearing zones )
Mineable coal seams much thicker than Witbank and Mpumalanga coal fields.

It’s about 500km to the Richards Bay coal terminal (RBCT) from the Waterberg coal fields, also the current rail way line to RBCT is struggling to supply coal to RBCT as 15m tonnes a year of non-coal freight that is currently taking up capacity on the existing line to RBCT. At present the biggest coal terminal in Africa has handling capacity of 91m tonnes a year but Transnet is struggling to supply 65m a year to the port.

Transnet has made some long-awaited decisions on major rail projects. Firstly, it plans to construct a new railway from Mpumalanga Province to KwaZulu-Natal through Swaziland, in order to increase rail capacity to both Matola Coal Terminal near Maputo in Mozambique and RBCT. The 165km line is due for completion by 2016 and will provide improved transport capacity for Swaziland, as well as South Africa and Mozambique.

Rather than directly providing additional coal carrying capacity, the new line can be used to transport the 15m tonnes a year of non-coal freight that is currently taking up capacity on the existing line to RBCT.

Secondly, Transnet has decided to proceed with the construction of a new 464km railway from the Waterberg Basin to the existing RBCT line with handling capacity of 80m tonnes a year.

In a nutshell I think that there will be a rail way line to the coal fields in Waterberg......Now from to and to where will it be is the Billion dollar question.

"To export coal from Waterberg you have 2 ways to do this”


1) As with the above to build a rail way line from the Waterberg coal fields to the RBCT is about 500km long(this could take upwards of between 5-10 years to be build) could this be what misfits is talking about?


2) If not the above than a rail way line from the Waterberg coal fields into Botswana.

Currently there is no rail infrastructure that crosses from Lephalale into Botswana, the idea is to build the link near the Stockpoort border post to link to Mahalapye or further south to link to Mmamabula. The line would run from the southern end of the Waterberg reserve to the northern side of the Botswana-run network to open the Mmamabula coalfields, and possibly the reserves located across the Zimbabwean border, Transnet have engaged with Botswana Rail to discuss the rail link and was currently actively marketing the project. The coalfields in Botswana were among many drivers for the expansion of rail capacity into the Waterberg.

Transnet had a two-tiered approach to developing rail in the Waterberg, which included minor expansion options through enhancement of the existing route and infrastructure, as well as major expansion options that would result in the doubling of the current route, infrastructure upgrades and new heavy-haul routes.

The new Waterberg rail lines would run over 560 km and would include a new single line between Thabazimbi and Ermelo. Transnet planned to add 23-million tons a year to the capacity of the line running from Lephalale to Ermelo by 2020.

A new single bidirectional line would also be constructed between Lephalale and Ermelo from 2026 onwards. It would have a capacity of 112-million tons a year.


“Now you ask what about the cost of building this rail way line from the Waterberg coal fields”


Anywhere up-wards of R20 billion dollars to do just that, now you all know of where ( which way to build the rail way line) and how much is it for the rail way line to be build......The bigger question here for all of us is will this happen?


The answer is YES I believe it will happen, for both not only for the future need of coal in SA, but also the future growth of SA and its economy as it will need coal to power its power stations, therefore RES is a very long term hold for me!


Good luck to all that hold RES

The above info can be found on the links below.

http://www.trademarksa.org/news/transnet-freight-rail-studies-botswana-sa-coal-link
http://en.wikipedia.org/wiki/Swazilink
http://en.wikipedia.org/wiki/Waterberg_Coalfield
http://africanbusinessmagazine.com/special-reports/sector-reports/transport-logistics-africa-on-the-move/private-investment-backs-new-lines
http://www.mmegi.bw/index.php?sid=4&aid=284&dir=2012/May/Wednesday16
http://www.miningweekly.com/article/south-africa-teams-up-with-swaziland-in-bid-to-relieve-coal-corridor-pressure-2012-01-20