Kuyasa Brochure

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    mining

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    A NEW AGE MINING VENTURE

    Born and built neither on a sense o entitlement

    nor on any pillar o gratuity but, rather, on

    the grit, courage and entrepreneurial air o its

    ounders to embrace a dream and turn it into

    reality, Kuyasa Mining will stand out in history

    as post-apartheid South Aricas frst truly

    independent new-age mining company.

    Kuyasa Mining was conceptualised in 1995,South Aricas historic frst year as a ully

    democratic nation. Since then, it has evolved

    rom a vision that has reached beyond the

    parameters o conventional thinking into a

    vibrant, stand alone, proitable and

    sel-unding black owner-managed enterprise

    that believes no rontier is inite.

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    BEYOND CONVENTIONAL THINKING

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    Thabo Sibeko Ayanda Bam Wendy Gobey

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    A CONFLUENCE OF CULTURES

    Rooted in its mantra o respect or One race

    the human race, Kuayasa Mining eschews

    the manner in which the policies o airmative

    action and transormation have been widely

    degraded and diluted to a level where

    box-ticking, number juggling, and instant

    wealth creation so oten take precedence

    over, and make a mockery o, genuine

    empowerment.

    Kuyasa Minings employment policies and

    practices run ully counter to this trend.

    Its people are selected and employed purely

    on merit, and no premiums are paid or race

    or creed. Each individual is expected to

    deliver...and is held ully accountable.

    The result o this approach, which is applied

    across the entire spectrum o operations

    rom boardroom to coal ace is a stable

    workorce that represents virtually every aceto South Aricas demographics...people who

    unction in the knowledge that their

    presence is justiied and their contribution

    meaningul and appreciated.

    Most o the groups production workers are

    mainly local residents, who are amiliar with

    the distinctive mining conditions o the area.

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    THE PAST

    Kuyasa Mining (Pty) Limited had modest

    beginnings in 1996 as the owner-manager o

    a small-scale, limited-lie opencast bituminous

    coal mine, known as Ikhwezi Colliery, near

    the east-Gauteng town o Delmas an area

    which remains the epicentre o the companys

    mining operations.

    It was rom this relatively inauspicious

    platorm that the ledgling company later

    progressed to the acquisition (rom BHP

    Billiton in mid-2002) o the much larger

    Delmas Colliery a conventional underground

    mechanised bord and pillar mine, contiguous

    to Ikhwezi, which it later renamed Delmas

    Coal.

    One o Kuyasa Minings biggest challenges

    at the time was to reassure and retain the

    Delmas work orce in the ace o their ears

    about leaving the comort zone o a major

    international corporation or a (then

    perceived) uncertain uture in the uncharted

    waters o black ownership and management

    in a small entrepreneurial coal mining

    venture.

    It was a challenge that was more thanadequately met.

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    Let to right Thembeka Mkhize Metallurgical manager

    Michael du Plessis Production manager Mpumilelo Saliwa Engineering manager

    Masasa Makhetha Finance manager Andrea Heine Human Resources manager Humphrey Mokwena General manager

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    THE PRESENT

    Now driven rom a modern new corporate

    headquarters on the eastern ringe o the

    Mpumalanga Province town o eMalahleni,

    the traditional coal capital o South Arica,

    Kuyasa Mining is well into its second decade

    o operation. The company is today a

    signiicant independent supplier o coal to

    South Aricas national power utility, Eskom,

    as well as to a cross-section o inland coal-consuming industries.

    This is a ar cry rom the ormative years,

    when there was widespread scepticism about

    buying coal rom a small, virtually unknown,

    newcomer that not only had no production,

    quality and delivery track record, but was also

    unprecedented in its leadership and structure.

    As a community service, Kuyasa Mining also

    supplies to etch-and-carry individual coal

    traders who operate mainly in non-electriied

    inland rural areas.

    Bheki Mthethwa

    General manager -

    inance

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    THE FUTURE

    Looking ahead, Kuyasa Mining plans to

    reinorce its position in the market as a

    reliable and competitive independent

    producer and supplier by growing sales to

    existing customers, by broadening its

    customer base, and by acquiring additional

    coal reserves on which to develop new

    projects.

    For instance, it has identifed direct involvement

    in power generation as a key area o opportunity

    a synergistic venture that is now indelibly

    written into its corporate objectives.

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    POWER GENERATION

    Folding back horizons o opportunity to explore and exploit

    what lies beyond comes naturally to Kuyasa Mining. It is this

    element o its corporate DNA that has enabled the

    company to overcome obstacles and achieve itssuccess so ar.

    As part o this process, Kuyasa Mining identiied in the

    early 2000s an opportunity to become a power generator

    in its own right, to help meet the electricity needs o a

    nation that was patently running out o generating

    capacity.

    Kuyasa Mining was so ervent in this vision that, in 2004, it

    commissioned US-based consultants Black and Veatch to

    do a pre-easibility study on the establishment o a

    greenields mine-mouth, clean coal technology power

    plant on an unexploited coal deposit known as theLeandra and Leslie coal ields which lies adjacent to

    Delmas Coal.

    The results were so encouraging that the same consultants

    were tasked to produce a inal easibility report on the

    project, which emphatically conirmed its viability. As a

    result, Kuyasa Mining appointed South Arican consultants

    James and Wegner to carry out a comprehensive

    environmental impact assessment.

    The process o obtaining the permission o Eskom, the

    Regulator and Government, as well as securing a power

    purchase agreement or the proposed new generatingacility, has so ar been slow and unyielding.

    For the time being, thereore, it remains a project in progress.

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    SKILLS DEVELOPMENT

    Kuyasa Minings perception o sustainable skills development

    starts at the very roots o the problem in the schools and

    is another relection o the companys unconventional and

    resourceul thought processes.

    The cornerstone o its approach is that empowerment

    initiatives by both Government and the private sector should

    be ocused a great deal more on pre-tertiary education and

    ar less on illing BBBEE scorecards.

    In the irm knowledge that the education system is generally

    below standard and that, without education, the country will

    go nowhere, Kuyasa Minings clarion call is: Lets give our

    children a uture.

    Against this background, the company has embarked on a

    process that will begin producing homegrown SET (science,

    engineering and technology) graduates at rate o 40 a year.

    The project involves the establishment, near Delmas, o an

    independent mining science academy that will identiy,

    develop, and sponsor maths and science-gited, butinancially disadvantaged, senior high school learners up

    to and through tertiary education.

    Kuyasa Minings philosophy behind this ar-reaching project

    is: Bring us your brains we dont care who you are.

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    FOUNDING FIGURES

    Kuyasa Mining is headed by three o its original ounders Ayanda Bam,

    Thabo Sibeko and Wendy Gobey each o whom has a strong pedigree

    in the mainstream o the South Arican coal mining industry.

    Between them, they have brought to Kuyasa Mining a range o

    complementary tertiary qualiications, and a depth o experience, that

    its together virtually seamlessly to orm a strong and vibrant

    management team.

    Ayanda Bama graduate in computer sciences, is executive chairman o the company,

    as well as the custodian and the driving orce behind its vision and

    avant-garde approach to conducting its business

    Wendy Gobey

    holder o an IPM (Institute o People Management) diploma in human

    resources, is director o corporate aairs with a wide mandate on

    managing the companys precious human capital.

    Thabo Sibeko

    operations director, is an electrical engineer whose lengthy involvement

    in the coal mining industry was supplemented by a tour o duty at Eskom.

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    Kuyasa Mining head office

    Cape Town

    Johannesburg

    Durban

    eMalahleni

    Delmas

    Republic of South Africa

    KUYASA MINING AT A GLANCE

    Conceptualised 1995

    Established January 1996

    Production Current 2.5-mtpa ROM

    Operations Kuyasa Mining

    Ikhwezi Colliery

    Delmas Coal

    Employees 350

    Customers Power utilities and

    industrial consumers

    CONTACT DETAILS

    Kuyasa Mining (Pty) Ltd

    Tel +27 13 656 36 59

    Fax +27 13 690 35 45

    e-mail [email protected]

    2 Neven Street

    Private bag x7250eMalahleni

    1035

    Mpumalanga

    Republic o South Arica

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    Design: Quintessential #1956

    Copy writing: Greg Kukard

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    miningwww.kuyasamining.co.za