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%.
A bankable feasibility study is complete, and various funding mechanisms – including listing, project financing and equipment financing – remain under consideration.
Seriti is engaging with Eskom to reach a commercially viable and sustainable coal supply agreement. It is envisaged that the project will be developed in three phases in line with Kusile’s needs.
New Largo’s export potential continues to be explored.