Ndalamo Resources, a leading South African mid-tier mining company, is proud to announce the acquisition of the Wonderfontein Coal Mine in Mpumalanga from Umsimbithi Mining (Pty). This acquisition is particularly significant as Wonderfontein becomes Ndalamo’s first wholly owned operating mine, a strategic milestone that underscores the company’s commitment to expanding its independent operational footprint in the mining sector.
The Wonderfontein Coal Mine has a rich history, originally owned and operated by Umsimbithi Mining (Pty) Limited in a joint venture of 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 has a proven track record of strategic joint ventures, including successful partnerships with Universal Coal. However, the acquisition of Wonderfontein marks a new chapter in the company’s 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 acquisition of Wonderfontein Colliery not only strengthens our portfolio but also marks a significant milestone in our growth and diversification strategy,” said Shammy Luvhengo, CEO of Ndalamo. “With a processing plant capable of handling 300kt of coal per month and a railway siding designed to manage RBCT jumbo size wagons, this asset positions us to expand our offering and enhance operational control. 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,” said Shammy Luvhengo, CEO of Ndalamo.
Wonderfontein operates at a peak mining rate of 4.2 million tonnes per annum (Mtpa) and is expected to have a life of mine up to 2030. Its mining right, expires on 2nd June 2037, ensuring a long-term operational horizon.
Ndalamo is committed 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.
“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,” concludes Luvhengo.
