Black Royalty Minerals

CONTRIBUTING TO SOCIOECONOMIC DEVELOPMENT IN BRONKHORSTSPRUIT AND BEYOND

BLACK ROYALTY MINERALS

2 | Africa Outlook issue 83

MINING

A Beacon for Quality and Responsibility Black Royalty Minerals is showing that coal mining continues to be a vital socioeconomic contributor in South Africa, its Chilwavhusiku Colliery being launched in 2018 Project Manager: Josh Mann

Africa Outlook issue 83 | 3

BLACK ROYALTY MINERALS

S

outh Africa and coal go a long way back.

The country’s reserves are abundant thanks to the almighty Ecca deposits, a stratum of the Karoo Supergroup and thought to be anywhere between 250 and 280 million years old.

Located mostly in the north-eastern quarter of South Africa, the huge resource has been fundamental in powering the nation’s development since coal mining became mainstream in the late 19th century, its growth falling roughly in line with the start of goldmining on the Witwatersrand.

Either side of the Second World War saw mass industrialisation pick up across South Africa, which included a major programme of building power stations, particularly on the coal fields

of Witbank and Delmas, as well as Sasol’s major coal-based synfuels and organic chemicals complex at Secunda.

Given the lack of success in finding other fossil fuels, coal was and remains a critical source of fuel for commercial and industrial activities in the country today.

In Bronkhorstspruit, a small town east of Pretoria, Black Royalty Minerals launched its first colliery in 2018.

The company is part of the Makole Gorup and is ambitious when it comes to growth, the firm not only looking to maximise the potential of the Chilwavhusiku Colliery, but also exploring other coal mining assets as well as the possibility of working with other minerals throughout South Africa.

POWERFUL PARENT Black Royalty Minerals is a subsidiary of the Makole Group.

Makole Group is a South African 100 percent black owned conglomerate predominantly working in infrastructure, property development and mining fields, although it does have other business interests outside of construction and mining.

The group was established by Ndavhe Mareda, who maintains a hands-on role in the organisation, the Chairman involved in the overseeing of all construction and mining aspects of the business.

Milele Group Milele Group is a diversified investment holding company specialising in coal mining and beneficiation, logistics and agribusiness .

This black, female-owned powerhouse is steered by its exceptional young and dynamic geologist and businesswoman with a vast experience in the coal mining industry, CEO- Zandile Mdanda.

The company champions for women empowerment and transformation through excellence in business. To achieve this, the company leans on its qualified and experienced executives whose main objective is to ‘do today what will last forever’.

Milele Group is a well-known collaborator with other small to medium sized businesses, ensuring not only its own success but the growth and impact of other businesses in the larger economy.

Some of its core clients are BRM and cement manufacturing company, Lafarge. Moreover, the Group is determined to play its part in empowering youth through employment and community giveback initiatives. Whether it be coal- or agri- business, Milele Group is proving itself a driving force in sustainable growth and fruitful investments.

On its webpage dedicated to Black Royalty Minerals, it states: “Makole Group’s strategy is two-pronged – maintaining and growing our South African operations, integral to which is diversifying Black Royalty Minerals’ mineral resources assets and revenue streams such as export opportunities.”

Zandile Madanda - CEO

www.milelegroup.com

4 | Africa Outlook issue 83

We leverage our existing network of business contacts to promote a well-diversified investment portfolio

Milele Group, Building 3, First Floor.

Parc Nicol Park.

3001 William Nicol Drive, Bryanston, Johannesburg.

2191.

Telephone: (+27) 11 463 5554 Email: info@milelegroup.com

WWW.MILELEGROUP.COM

BLACK ROYALTY MINERALS “The vision of Chilwavhusiku Colliery is to provide clients with a market leading quality product which forms the essence of the establishment of the operation,” Black Royalty states on its website. “It is founded upon exceptional business ethics based on the visions of provision, inheritance, protection and proper product deliverance.”

Indeed, the company prides itself on driving sustainable development across all of its operations, an approach to business encapsulated by four key pillars: fair industry prices, excellent and honest services, uncompromised product quality, and continued increased capacity.

Not only this, the Chilwavhusiku Colliery was the first fully black-owned mine in South Africa, Makole Group’s Chairman Ndavhe Mareda standing

as an inspiration to others seeking to make it to the top of what has been a traditionally white-dominated industry.

Mareda’s story is one of a struggle to break the traditional monopoly, his success in doing so a landmark in the industry’s development into a more equal sector and responsible contributor to South Africa’s economy.

Speaking at the time of the mine’s opening, Mareda said: “Mining is a pillar and cornerstone of the South African economy. It is a foundation that you cannot ignore in conversations about economic development.

“We are looking at domestic and export markets and are working with a lot of traders… that will expand our horizons. In terms of specific markets, we will supply any sector that needs coal.”

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IN FOCUS: BRONKHORSTSPRUIT Black Royalty Minerals likens its origins to two well-known sayings - make hay before sunset and fortune favours the brave.

It all began with the issuing of two mining permits within the Bronkhorstspruit district of Gauteng, around 50 kilometres east of Pretoria.

The smartest security companies are blending the benefits of technology with their workforce to enhance security capabilities in a truly integrated way.

BY HTONL - OWN WORK, CC BY-SA 4.0,

Bronkhorstspruit was thought to be founded in 1858 when a group of Voortrekkers settled in the area, initially named Kalkoenkransrivier until it changed in 1935.

The modern name derives from a military conflict.

On December 20, 1880, it was the scene of the Battle of Bronkhorstspruit, an important event in the early days of the First Boer War when a Boer commando ambushed a British army column.

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6 | Africa Outlook issue 83

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BLACK ROYALTY MINERALS

Indeed, key to Black Royalty Minerals’ plans for growth is its strict compliance with regulatory requirements, covering health and safety and the surrounding environment.

The company states: “Compliance with all the industry legal requirements is key if we are to grow our vision as a company. Whilst our country is regarded as a developing nation, our compliance process compares with some of the most sophisticated in the world.

“This is why we’re constantly gathering information through the annual Mining Indaba and the coal summits with other industry forums that are held each year around the 8 | Africa Outlook issue 83

Black Royalty Minerals ensures that at least 80 percent of its colliery workforce are sourced from surrounding communities

globe. It is our bid to ensure that we advance ourselves technically whilst in the compliance parameters of the highest degree, and keeping them relevant to our local industry.”

Black Royalty Minerals is also determined to operate in a socially responsible manner.

Its development plans for the Bronkhorstspruit community include ensuring that over 80 percent of its colliery workforce are sourced from surrounding communities.

Beyond this, the company is investing in promising young students by offering them tertiary education bursaries, and outsourcing to and collaborating with local

MINING

COAL IN SOUTH AFRICA The coal industry continues to be an important socioeconomic contributor to South Africa, as shown by the following statistics from Minerals Council South Africa: • The coal industry employed 92,230 people in 2019 (86,647 in 2018), representing about 19 percent of total employment in the mining sector.

• In 2019, 258.9 million tonnes of coal were produced (253 Mt in 2018) with total coal sales of R139.3 billion (R146 billion in 2018).

• The coal industry spent R61 billion procuring goods and services, most of it locally, thus contributing to the creation and maintaining of jobs in other industries.

• Around 70 percent of coal volume is consumed domestically and more than 70 percent of electricity demand is generated from coal power.

• Richards Bay Coal Terminal (RBCT) serves as the primary export port, and has a dedicated rail line.

‘BLACK ROYALTY MINERALS, WITH ITS RESPONSIBLE APPROACH TO BUSINESS AND AMBITIOUS PLANS TO GROW, LOOKS CERTAIN TO CONTINUE PLAYING AN IMPORTANT PART OF THIS ONGOING STORY’

business in advancing the economic circumstances of the surrounding community.

And the contribution coal mining makes will continue for many years to come, not only at the Chilwavhusiku Colliery but also across South Africa more widely.

Minerals Council South Africa confirms that the country’s major coal power stations will remain operational until at least the middle of this decade, with other thermal power stations being built by Eskom also ensuring the continued demand for coal for some time to come.

The livelihoods of more than 92,000 people are dependent on the industry,

making it the third largest mining subsector after gold and platinum, and no less vital in the ongoing socioeconomic development of the nation.

Black Royalty Minerals, with its responsible approach to business and ambitious plans to grow, looks certain to continue playing an important part of this ongoing story.

BLACK ROYALTY MINERALS Tel: +27 11 023 9380 info@blackroyalty.co.za www. blackroyalty.co.za

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