South African mining company Ndalamo Resources has announced the acquisition of the Wonderfontein coal mine in Mpumalanga, South Africa, from Umsimbithi Mining.
Wonderfontein is Ndalamo’s first wholly owned operating mine and marks a big step in the corporate’s growth and diversification strategy.
The coal mine has been operational since 2012 and transitioned from an underground to an open-cast truck-and-shovel operation in 2013.
It operates at a peak mining rate of 4.2 million tonnes each year (mtpa) and is anticipated to proceed mining operations until 2030.
The mining right extends until 2 June 2037, providing a long-term operational horizon for Ndalamo.
It was initially owned and operated by Umsimbithi Mining in a three way partnership (JV) involving Lithemba Wonderfontein Coal, Phembani Group and Glencore.
The acquisition of Wonderfontein offers “greater operational independence”, allowing Ndalamo to refine its approach to sustainable and profitable mining without the constraints of JVs, in response to the corporate.
Ndalamo CEO Shammy Luvhengo said: “The acquisition of Wonderfontein Colliery not only strengthens our portfolio but additionally marks a big milestone in our growth and diversification strategy.
“With a processing plant able to handling 300kt [300,000 tonnes] of coal per thirty days and a railway siding designed to administer RBCT [Richards Bay Coal Terminal] jumbo-size wagons, this asset positions us to expand our offering and enhance operational control.
“We’re determined to take care of profit margins by introducing latest investment opportunities, consolidating strategic assets, and exploring markets beyond Eskom. This proactive approach will be certain that we remain resilient and adaptable in a rapidly evolving industry.”
While coal stays the core business and comprises as much as 70% of future operations, the corporate can be exploring diversification into latest commodities and alternate energies.
Luvhengo added: “As we advance, we are going to proceed to act responsibly towards our people, communities and the environment, ensuring that our growth contributes positively to each our stakeholders and the planet.
“We’re passionate about the opportunities this acquisition brings and are dedicated to fostering a resilient and socially responsible business that aligns with our long-term vision.”
In January 2025, exporters of coal and iron ore in South Africa were considering the finalisation of investment agreements price billions of rand with state-owned logistics company Transnet, geared toward repairing essential rail lines and improving shipping capabilities.