The mining right extends until 2 June 2037, providing a long-term operational horizon for Ndalamo.
Wonderfontein is Ndalamo’s first wholly owned operating mine and marks a significant step in the company’s growth and diversification strategy.
The coal mine has been operational since 2012 and transitioned from an underground to an open-cast truck-and-shovel operation in 2013.
It operates at a peak mining rate of 4.2 million tonnes per annum (mtpa) and is expected to continue mining operations until 2030.
The mining right extends until 2 June 2037, providing a long-term operational horizon for Ndalamo.
It was initially owned and operated by Umsimbithi Mining in a joint venture (JV) involving Lithemba Wonderfontein Coal, Phembani Group and Glencore.
The acquisition of Wonderfontein offers “greater operational independence”, allowing Ndalamo to refine its approach to sustainable and profitable mining without the constraints of JVs, according to the company.
Ndalamo CEO Shammy Luvhengo said: “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 300kt [300,000 tonnes] of coal per month and a railway siding designed to manage RBCT [Richards Bay Coal Terminal] 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.”
While coal remains the core business and comprises up to 70% of future operations, the company is also exploring diversification into new commodities and alternate energies.
Luvhengo added: “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.”
In January 2025, exporters of coal and iron ore in South Africa were considering the finalisation of investment agreements worth billions of rand with state-owned logistics company Transnet, aimed at repairing essential rail lines and improving shipping capabilities.
