The New Largo colliery is being developed as a multi mini-pit opencast operation to supply both Kusile Power Station and the export markets.
New Largo, which has a resource of 585Mt, has the potential to become a large-scale, long-life coal mine, able to supply Eskom’s adjacent Kusile power station with around 12 Mtpa of thermal coal over a 50-year period.
Seriti has a 67.5% stake in New Largo Coal together with the Industrial Development Corporation (22.5% shareholding) and the New Largo Employee and Community Trusts, which each hold 5%.
Albeit delayed, Seriti is in the process of concluding various 10 year coal supply agreements with Eskom which will provide Kusile Power Station with a cost competitive, secure coal supply from the adjacent colliery at the necessary specifications. The 10 year coal supply agreements will further underpin the construction by Seriti of a conveyor facility from the colliery directly into the Kusile stock yard in order to reduce coal trucking volumes and associated logistics costs.
Employee and Community Trusts
Seriti Resources has allocated an unencumbered shareholding of 5% to trusts established for the benefit of employees and 5% to trusts established for the benefit of the members of communities adjacent its mines.