Ndalamo Resources - Mining Outlook - issue 3

GROWING A SMALL SEED INTO

SUSTAINABLE ROOTS We speak to Shammy Luvhengo, CEO of Ndalamo Resources, as he reflects upon the company’s evolution and explores its environmental goals for coal production in South Africa Writer: Rachel Carr | Project Manager: Joshua Mann

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s a 100 percent black-owned mid-tier coal producer, Ndalamo Resources focuses on investment opportunities in the South African mining sector. The company was established in 2013 by amalgamating various mining and financial sectors with sustainable, socially responsible professionals and

entrepreneurs.

The impetus for Ndalamo Resources arose from the requirements of a black community empowerment charter. Now in its 10th year, the company has evolved from an investment enterprise to the fully operational business it is today.

The company began with

the acquisition of New Clydesdale Colliery from Exxaro; it then became the partner for Universal Coal.

Strategically, the two companies decided to consolidate all black economic interests within one, eventually emerging as Ndalamo Resources.

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“It all happened over the last 10 years. We have grown through acquiring mines from Exxaro and other projects. That is how the company was formed, and I am proud we will soon be celebrating our 10th anniversary.

“We have the internal skills technically, corporately, financially, and otherwise where we are now a functioning coal mining company. Obviously, we are trying to grow our footprint to be much bigger than it currently is,” introduces Shammy Luvhengo, CEO of Ndalamo Resources.

Partnering with Universal Coal, in a 51/49 percent split in favour of Ndalamo Resources, there are presently two actively operating mines, and one in care and maintenance and the other a prospecting project called Eloff, which will be operational in the next six months, and the Arnot South project.

North Block Complex training facility

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MINING OUTLOOK: HOW DO YOU INCENTIVISE EMPLOYEES? DO YOU HAVE TRAINING PROGRAMMES OR AN EMPLOYEE OWNERSHIP PLAN? Shammy Luvhengo, CEO: “Although we do not have an employee ownership plan yet, we carry out salary reviews every two years, benchmarked across the industry. The majority of our employees are within the 75 percent quintile in terms of the salary scale, so I believe we pay well from a salary perspective. We are also in the process of developing a much broader employee initiative scheme.

“We pay annual bonuses, but only if finances allow. We are now focused on the wellness of employees in the sense that we are now making sure we have medical aid and life cover for employees. Considering some of the suggestions from our HR department, we would like to see how we can do better. I am quite pleased that we can match what the industry is paying out there, if not better it in some instances. We will continue looking at the best way to incentivise our employees going forward through the bonus structure and ownership schemes.”

North Block Complex

With 25 members of staff currently employed by Ndalamo Resources, the wider operations have indirectly created employment opportunities for around 4,000 people, including contractors within the three operations. Additionally, the company is making fortuitous strides within the community in terms of projects and ecological commitments.

BENEFICIAL PROJECTS The Eloff project is reopening subject to utility provider Eskom, the largest electricity producer in Africa, committing to the coal sale agreement. Despite the present uncertainty, Luvhengo is excited to return to Delmas, a small town in the Mpumalanga Province, to continue Ndalamo Resources’ investment efforts and uplift and empower the local community.

“It can be a big project; we need to get the right synergies on the logistics side. It is one of the most extensive resources in the area, close to all of the towns in Springs Coal Field, and we intend to make it much more of a larger scale operation going forward,” he reveals.

It is a project that Luvhengo is particularly proud of, and one that Ndalamo Resources is more likely to implement in the near future.

Of course, the company is also honoured to be involved with various community projects.

Houses built for the local community

“Most of what we are currently working on regarding the neighbourhood is intertwined with what our mines are doing. We pride ourselves on being the first company to establish community-based trucking initiatives where we uplift local entrepreneurs and enable them to have long-term trucking

contracts within our operating mines.”

All projects are managed sustainably, which Luvhango feels is one of the best initiatives to come out of the coal industry. Sustainability is part of the company’s DNA, especially when Ndalamo Resources began work in Delmas.

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T+27 66 120 1371 T+27 66 059 2590 E finance@ttcarriers.co.za Mpumalanga South Africa

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“We definitely want communities to have much more exposure and benefits out of where we operate, not just superficially, but in literal good terms.”

COMMITTED TO CHANGE Environmental objectives for Ndalamo Resources are closely tied to the energy transition. Any obligations are premised on the fact that the company operates within the mining sphere and that excavation and extraction are achieved in the most ecologically responsible and sensitive manner.

“We are the company that takes environmental management very seriously, to the point where part of our performance must be about how we have mined and still looked after the

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“ W E H AV E T H E INTERNAL SKILLS T E C H N I C A L LY, C O R P O R AT E LY, F I N A N C I A L LY, A N D OT H E RW I S E W H E R E WE ARE NOW A F U N C T I O N I N G COA L M I N I N G C O M P A N Y. O B V I O U S LY, W E A R E T RY I N G TO G R OW O U R FO OT P R I N T TO BE MUCH BIGGER THAN IT C U R R E N T LY I S ” – SHAMMY LUVHENGO, CEO, N DA L A M O R E S O U R C E S

environment. That means we need to be active and obedient in running our rehabilitation processes; it cannot be an afterthought, but part of the business imperative,” Luvhengo outlines.

It was late last year when Ndalamo Resources established a green energy business that must be profitable in the long run. That helped the company chase carbon neutrality – its target regarding sustainability and climate change.

“Our aim is to ensure that we are carbon neutral in the next 10 years according to our latest environmental, social, and governance (ESG) framework. We are ESG conscious and have commissioned our first ESG report that sets the targets which will become part of our business targets as we advance,” he adds.

New Clydesdale Colliery before rehabilitation

New Clydesdale Colliery after rehabilitation

YOUR COMPLETE MINING SOLUTION Inayo Mining is a resource division company. Formed as a result of a successful joint venture partnership between Inala Mining Services and Ayona Mining, an SMME company Inayo Mining was established in 2017.

A Level 2 BBBEE rated company, with 51 percent black woman ownership.

With our unique model in the mining industry, the company aims to merge the capacity of the various partner to deliver value to the client.

We operate in the mining industry and provide an array of services including opencast mining, mine rehabilitation, extra large mining plant hire, component refurbishment, mining equipment, and repairs.

Our current operations are based in Emalaleni coal fields with plans to extend beyond this basin in the near future. Consistent with our strategic intent to grow our geographical footprint throughout South Africa.

M

O pa se

V

To pr th se

V • • • •

MISSION

Our mission is to be the preferred mining artner in the industry with exceptional ervice and quality services.

VISION

ogether we strive to be recognised as the referred partner in the mining industry hrough competitive pricing, professional ervice, and safety as our highest priority.

VALUES Integrity Entrepreneurial Spirit Building Relationships Respect

inayo.co.za

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Alongside sustainability and community projects, the key principles of broad-based black economic empowerment (B-BBEE) also guide Ndalamo Resources’ commitments.

“I was pleasantly surprised that where we are operational, we received Level 1 certification in terms of B-BBEE Department: Trade Industry and Competition (DTIC) codes of good practice for the past financial year,” says Luvhengo optimistically.

Ndalamo Resources has a genuine and balanced approach when it comes to doing the best it can in business in terms of empowerment from a broad-based perspective and sustainable development, regarding how the company onboards suppliers, monitors this onboarding, and helps them develop into sustainable businesses going forward.

“Our initiatives have gotten us to the top spot, and I think it’s a measure of much work that the team has to 14 | Mining Outlook Issue 3

SUSTAINABILITY MANAGEMENT Ndalamo Resources aims to minimise any adverse environmental impacts that may occur from mining activity and promote efficient use of resources.

Environmental impacts are identified, and plans are developed, implemented, and adhered to. Reports and techniques to address water management, biodiversity management, waste management, air quality management, energy consumption, and greenhouse gas (GHG) emissions are constantly in use to ensure sustainability.

Ultimately, the goal is to go beyond compliance with environmental statutory requirements. New Clydesdale Colliery – which has successfully rehabilitated the historic Valkrantz opencast pit section, Ubuntu Colliery, and North Block Complex have been granted all relevant environmental licences to operate.

Environmental monitoring reviews, including inspections, risk assessments, internal audits, independent audits, and the processing and analyses of ecological data, are conducted regularly to assess and generate sustainable mitigation plans.

New Clydesdale Colliery, Ubuntu Colliery, and North Block Complex have obtained 2015: ISO 14001 Certification for Environmental Management System, and Eloff Colliery has environmental authorisation in terms of the NEMA Act granted for Phase 1 and Phase 3. A water use licence for Phase 3 has also been granted.

No major or reportable environmental non-compliances have occurred at Ndalamo Resources’ operations or projects.

Eugene Pretorius & Associates This survey practice was established in 1982 by Eugene Pretorius to provide a comprehensive survey solution to smaller mining and quarrying enterprises, who did not have the establishment to employ full-time surveyors.

Eugene Pretorius & Associates (EPA) was re-established in September 1993 together with Stephan Museler and today forms part of the Pretorius Group of Companies.

Over the years EPA Survey has maintained a competitive edge by utilising state of the art technologies.

These technologies are Trimble GPS, robotic total stations, terrestrial static laser scanners as well as airborne LiDAR and Mobile LiDAR Mapping

Systems. EPA has recently acquired its RPAS operators certificate from the South African Civil Aviation Authority which will assist our clients with aerial photogrammetry.

The company’s competitive edge is further advanced by a full geological, mine planning and technical services team who employs the latest technology in the form of two Robertsons Geologging wireline logging unit and a ceasium-vapour magnetometer.

EPA’s qualified surveyors, geologists and highly skilled technical staff together with advanced technologies forms an effective and fully integrated mine technical solution offered into the mining,construction and engineering

epasurvey.co.za

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put in to ensure we find ourselves a Level 1 supplier,” expresses Luvhengo.

GLOBAL GOALS Priorities for the year ahead include Ndalamo Resources becoming a respected mining business based in South Africa with a global reach, offering various commodities in addition to coal.

“We definitely want to achieve 10 to 15 million tonnes per year in coal sales, hopefully adding one or two other commodities to that,” Luvhengo outlines.

Primary objectives include creating sustainable value for all stakeholders alongside equity providers, employees, and communities. Furthermore, Ndalamo Resources’ plans for growth mean retaining profit

NDALAMO RESOURCES’ STRATEGY IS CENTRED AROUND THE FOLLOWING: • Implementing operating models to integrate and sustainably operate small-to-medium-sized mines profitably.

• The operating model, which has led to the successful acquisition of various mines from larger mining companies, following a thorough assessment and redesign of operational models where necessary.

• Conducting operations under a social responsibility framework that ensures the sustainability of all stakeholders, whilst meeting the economic returns expected by capital providers and complying with prevailing regulatory requirements.

Head office staff

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“ W E D E F I N I T E LY WA N T C O M M U N I T I E S T O H AV E M U C H M O R E E X P O S U R E A N D B E N E F I T S O U T O F W H E R E W E O P E R AT E , N O T J U S T S U P E R F I C I A L LY, B U T I N L I T E R A L G O O D T E R M S ” – S H A M M Y LU V H E N G O, C E O, N DA L A M O R E S O U R C E S

margins through focused costcutting interventions.

Growth will also be achieved by acquiring and consolidating adjacent assets that have a strategic fit.

“Organic production growth will additionally come from our existing assets by increasing sales out of the North Block Complex, New Clydesdale Colliery, and Eloff-Kangala Extension, as well as introducing new investment opportunities into the business and diversifying out of coal into other commodities,” shares Luvhengo.

A mission closer to home is to provide socio-economic development opportunities for Ndalamo Resources’ employees,

empowering previously disadvantaged members of host communities with skills to advance in areas of the company’s operations with technical and business development through mentoring and coaching.

“We want to be a company that attracts the best skills for black people in the market and is known for giving people an opportunity to show their talent to create an atmosphere where people can excel in what we bring them here to do,” Luvhengo explains.

Upskilling current employees in areas where improvement is needed is important to Ndalamo Resources as it gives the workforce an opportunity they never thought they would have,

by ensuring that any progress is monitored; moreover, guiding them towards various career paths within the organisation is equally as crucial.

Ndalamo Resources recognises that with stakeholder interactions, it is able to achieve the goal of developing sustainably and contributing constructively to society.

Tel: +27 12 140 3360 info@ndalamo.com www.ndalamoresources.co.za Mining Outlook Issue 3 | 17

NDALAMO RESOURCES 7 Impala Avenue, Irenelink Precinct, Building C, Doringkloof, Tshwane, South Africa Tel: +27 12 140 3360 info@ndalamo.com www.ndalamoresources.co.za

PRODUCED BY AFRICA OUTLOOK MAGAZINE