South African midtier mining company Ndalamo Resources has acquired the Wonderfontein coal mine, in Mpumalanga, from Umsimbithi Mining.

This acquisition marks Ndalamo’s first wholly owned operating mine, a strategic milestone aligned to the company’s commitment to expand its independent operational footprint in the mining sector.

The Wonderfontein mine was originally owned and operated by Umsimbithi Mining in a joint venture between Lithemba Wonderfontein Coal, Phembani Group and Glencore.

The mine began operations in 2012 as an underground mine, but transitioned to a fully opencast truck-and-shovel operation in 2013.

It was officially commissioned and opened as an opencast coal mine and wash plant in 2014.

Ndalamo points out that while it has a proven record, the acquisition of Wonderfontein marks a new chapter in its evolution, representing a critical step towards greater operational independence.

“This wholly owned asset enables Ndalamo to further refine its approach to sustainable and profitable mining, free from the constraints of joint ventures,” the company avers.

“The acquisition of Wonderfontein Colliery not only strengthens our portfolio but also marks a significant milestone in our growth and diversification strategy.

“With a processing plant capable of handling 300 000 t of coal per month and a railway siding designed to manage Richards Bay Coal Terminal jumbo size wagons, this asset positions us to expand our offering and enhance operational control,” says Ndalamo CEO Shammy Luvhengo.

“We are determined to maintain profit margins by introducing new investment opportunities, consolidating strategic assets, and exploring markets beyond Eskom. This proactive approach will ensure that we remain resilient and adaptable in a rapidly evolving industry,” Luvhengo adds.

Wonderfontein operates at a peak mining rate of 4.2-million tonnes a year and is expected to have a life-of-mine up to 2030.

Its mining right expires on June 2, 2037, ensuring a long-term operational horizon, the company points out.

It highlights its commitments to creating sustainable value for its stakeholders by pursuing a growth and diversification strategy.

While coal will remain the core business and is expected to comprise up to 70% of future operations, the company is also focused on diversifying into new commodities and alternate energies.

The Wonderfontein acquisition is a key step in this direction, reinforcing Ndalamo’s position in the coal sector while laying the groundwork for future growth in other areas, the company asserts.

“As we advance, we will continue to act responsibly towards our people, communities, and the environment, ensuring that our growth contributes positively to both our stakeholders and the planet. We are enthusiastic about the opportunities this acquisition brings and are dedicated to fostering a resilient and socially responsible business that aligns with our long-term vision,” Luvhengo says.