The project includes the development of the Impumelelo and Shondoni collieries in Mpumalanga province.

Sasol expects Impumelelo to be operational by June 2015 at the latest, while the Shondoni coal mine is expected to be productive towards the end of 2015.

At full production, Shondoni is predicted to produce 10.5 million short tons per annum of streaming coal, while Impumelelo is looking to initially produce 8.5Mtpa and steadily build up to 10.5Mtpa.

“[An] external funding facility of R2.5 billion for these projects has been secured and the first drawdowns have taken place,” Sasol said in an update to shareholders.

The four projects – Thubelisha, Impumelelo, Shondoni and Tweedraai – will replace the long-serving Twistdraai, Brandspruit, Middelbult and part of the Syferfontein operations.

Sasol Mining’s operating profit for the 2013 financial year was R2.2 billion, 3% lower than the previous financial year due to lower export prices and higher operating costs.