THUNGELA RESOURCES LTD

THUNGELA RESOURCES LTD Organogram

Thungela Resources Ltd is a large producer and exporter of thermal coal in South Africa, based on aggregate thermal coal reserves and marketable thermal coal production. As a group, Thungela exports thermal coal mainly to India, Asia, SEA, Middle East and North African markets.

Thungela owns interests in 7 mining operations in the Mpumalanga province of South Africa:
• Annea colliery - Previously known as the Elders project, is an underground bord and pillar coal mine, with Coal Resources Measured: 36.1Mt, Indicated: 12.4Mt, Coal Reserves, Proved: 38.9Mt, Probable: 34.9Mt, and LOM of 20 years
• Goedehoop colliery - underground thermal coal mine, with Coal Resources Measured: 236.1Mt, Indicated: 9.1Mt, and LOM of 0 years
• Greenside colliery - underground thermal coal mine, with Coal Resources Measured: 11.5Mt, Indicated: 4.0Mt, Coal Reserves, Proved: 8.9Mt, Probable: 1.1Mt, and LOM of 3 years
• Isibonelo colliery - open cast thermal coal mine, with Coal Resources Measured: 16.5Mt, and LOM of 0 years. Isibonelo ceased operations on 31 December 2025.
• Khwezela colliery - open cast thermal coal mine, with Coal Resources Measured: 41.7Mt, Indicated: 8.6Mt, Coal Reserves Proved: 17.9Mt, Probable: 0.4Mt, and LOM of 4 years
• Mafube colliery - open cast thermal coal mine, with Coal Resources Measured: 40.0Mt, Indicated: 1.3Mt, Coal Reserves Proved: 92.0Mt, Probable: 8.2Mt, and LOM of 16 years
• Zibulo colliery - underground and open cast mini-pit thermal coal mine, with Coal Resources Measured: 391.1Mt, Indicated: 57.6Mt, Coal Reserves Proved: 21.8Mt, Probable: 87.9Mt, and LOM of 15 years

Projects

• The Zibulo North Shaft project
The Zibulo North Shaft project aims to establish a new decline shaft and associated infrastructure within the existing Zibulo mining right area. This will enable access to the Zondagsfontein West reserves thereby extending the LOM to beyond 2040 and ensure continued utilisation of the full allocated wash capacity of the Phola Coal Processing Plant. The new shaft will improve operational efficiency and optimise the cost structure through reduced travel distances to the coal face. This will further mitigate the loss of ROM production as the opencast operation winds down, and de-risk the Zibulo operation through access to additional panels. The new shaft is positioned approximately 8km northwest of the existing shaft on the edge of Zondagsfontein West Resource area, which was acquired and licensed at the same time as the Zondagsfontein East (current Zibulo) mining area.
The on-site infrastructure is aimed at sustaining ROM production of up to 8Mtpa after the initial underground development has been completed. The export product quality is expected to reduce from 6,000kcal/kg to 5,700 kcal/kg from 2030 based on current operational strategies, while production beyond 2035 will be targeted for domestic supply.
During the 2024 financial year, a total investment of R1.8 billion was incurred, with an estimated 70% of the project completed. A further R800 million is expected to be spent in 2025 and 2026 to complete the project.

Capex cost R2.5 billion (between 2023 and 2026), LOM extension through to 2040, Production profile 8Mtpa, Potential quality 5,700kcal/kg export, 5,700kcal/kg export.

• The Lephalale coal bed methane (LCBM) project
The Lephalale coal bed methane (LCBM) project is located approximately 30km north-northeast of the town of Lephalale within the largely undeveloped Waterberg Coalfield of the Limpopo province of South Africa. Thungela holds an exploration right which covers a total area of approximately 132,000ha and owns approximately 12,500ha of surface rights within the exploration right footprint.
Thungela Resources Ltd initiated a capital investment of R400 million for the acquisition of a modular liquefied natural gas (LNG) plant and the associated site infrastructure, which will demonstrate the value in use of the gas resource. The LNG will initially be used to generate power at one of its operations, in order to reduce the impact of load curtailment during periods of electricity shortage.

The LCBM is a significant methane gas resource and Thungela is currently evaluating its development options and potential phasing. A capital investment of approximately R400 million will be made in 2025 for the acquisition of a modular liquefied natural gas plant and associated site infrastructure, which will demonstrate the value in use of the gas.