name of applicant: sasol mining (pty) ltd reference … › sasol2017 › appendix 3b....

26
NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE NUMBER: MP 30/5/1/1/2/3080 PR PROSPECTING WORK PROGRAMME SUBMITTED FOR THE RENEWAL OF A PROSPECTING RIGHT APPLICATION (WITHOUT BULK SAMPLING) AS REQUIRED IN TERMS OF SECTION 18 READ TOGETHER WITH REGULATION 7(1) OF THE MINERAL AND PETROLEUM RESOURCES DEVELOPMENT ACT (ACT 28 of 2002)

Upload: others

Post on 25-Jun-2020

0 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

NAME OF APPLICANT: Sasol Mining (Pty) Ltd

REFERENCE NUMBER: MP 30/5/1/1/2/3080 PR

PROSPECTING WORK PROGRAMME

SUBMITTED FOR THE RENEWAL OF A PROSPECTING RIGHT

APPLICATION (WITHOUT BULK SAMPLING)

AS REQUIRED IN TERMS OF SECTION 18 READ TOGETHER WITH REGULATION 7(1) OF

THE MINERAL AND PETROLEUM RESOURCES DEVELOPMENT ACT (ACT 28 of 2002)

Page 2: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

STANDARD DIRECTIVE

All applications for the renewal of prospecting rights are herewith, in terms of the

provisions of section 18 and in terms of Regulation 7(1) of the Mineral and Petroleum

Resources Development Act, directed to submit a Prospecting Work Programme,

strictly under the following headings and in the following format together with the

application for a prospecting right.

Page 3: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

1

1. REGULATION 7(1)(a): FULL PARTICULARS OF THE APPLICANT

Table 1: Applicant’s Contact Details

ITEM COMPANY CONTACT DETAILS

Name Sasol Mining (Pty) Ltd

Tel no (017) 614 8011

Fax no: (017) 614 8050 or (011) 522 1727

Cellular no 071 603 0909

E-mail address [email protected]

Postal address PO Box 699, Trichardt, 2300

Table 2: Consultant’s Details

ITEM CONSULTANT CONTACT DETAILS (If applicable)

Name NA

Tel no

Fax no:

Cellular no

E-mail address

Postal address

2. REGULATION 7(1)(b): PLAN CONTEMPLATED IN REGULATION 2(2) SHOWING

THE LAND TO WHICH THE APPLICATION RELATES

A plan of the relevant area as required in Regulation 2(2) promulgated under the

Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002), is attached

hereto as Annexure A.

Page 4: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

2

3. REGULATION 7(1)(c): THE REGISTERED DESCRIPTION OF THE LAND TO WHICH

THE APPLICATION RELATES

The properties included in this Prospecting Work Programme situated in the Highveld

Ridge, Bethal and Standerton magisterial districts are:

Portions 1, 8, 15-24 and 28 of Blesbokspruit 90 IS; and

The Remainder and Portions 1 and 5 of Rolspruit 127 IS.

Please refer to Annexure B for more detail on the ownership, etc.

4. REGULATION 7(1)(d) and (e): THE MINERAL OR MINERALS TO BE PROSPECTED

FOR

Table 4.1: Minerals to be prospected for

ITEM DETAIL

Type of mineral(s) Coal (C)

Type of minerals continued -

Type of minerals continued -

Locality (Direction and distance from nearest town)

Area is approximately 9.2 km east of the town of Leandra

Extent of the area required for prospecting 3031.7159 ha

Geological formation Ecca Group/Karoo Supergroup

4.2 Description why the geological formation substantiates the minerals to be

prospected for

The application area to which the application relates, is not directly adjacent to the

Secunda Complex and the Shondoni shaft, but forms part of Sasol Mining’s future

mining expansions.

The prospecting activities confirmed that several coal horizons occur as part of a

succession of sedimentary rocks belonging to the Vryheid Formation of the Ecca Group,

which in turn forms part of the Karoo Supergroup. The economic mining horizon is the

Number 4 Lower Coal Seam with a low mining potential for the Number 3 Coal Seam in

isolated areas. Apart from the coal seams, the Vryheid Formation consists mostly of

sandstones with intercalated siltstone zones. This Vryheid Formation has intensively

been intruded by dolerite dykes and sills.

Page 5: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

3

4.3 Attach a geological map that justifies the description why there is a possibility

that the minerals applied for could occur on the land concerned.

A representative profile of the Vryheid Formation and dolerite sills in the area is shown

in Figure 1, while Figure 2 illustrates the general surface geology of the area.

Figure 1: Representative profile of the Vryheid Formation in the area of interest, showing the position of the coal seams, the general sedimentary succession and

intrusive dolerite sills.

Page 6: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

4

Figure 2: Surface geology of the area where prospecting work is planned.

Page 7: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

5

5. REGULATION 7(1)(f): A DESCRIPTION OF HOW THE MINERAL RESOURCE AND

MINERAL DISTRIBUTION OF THE PROSPECTING AREA WILL BE DETERMINED

5.1 Prospecting work to be performed

5.1.1 Diamond drilling

Diamond drilling operations will be carried out for the purpose of retrieving core samples

and laboratory analyses will be performed on the core samples to establish the coal

quality and rock properties. No pits or trenches will be done. Six exploration boreholes,

each up to a depth of approximately 200 m are planned for the three years; however, a

20% additional or reduction of boreholes may be necessary depending on the new

geological information gathered during the initial stages of the drilling program. On

average a borehole takes approximately five days to complete.

5.1.2 Percussion drilling

Percussion (open-hole) boreholes may be drilled and geophysical surveyed to gather

additional geological information between other boreholes. For this purpose, down-hole

geophysical instruments and methods may be used to gather coal thickness and quality

information from the coal seam and overlying strata. This may take up to three days

per percussion borehole.

5.1.3 Directional drilling

Possible directional percussion (open-hole) boreholes will be drilled laterally (up to

1500 m depth in-seam) and geophysically surveyed to gather additional geological

information between other boreholes. For this purpose, down-hole geophysical

instruments and methods may be used to confirm lithological types within the coal seam

and overlying strata. This may take up to one year per directional drilling site.

5.1.4 Geochemical work to be performed

If necessary, one hole will be drilled for geochemical work. This is subject to the

Environmental Department at Sasol finding suitable sites for the borehole.

Page 8: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

6

5.1.5 Geophysical survey work to be undertaken

Down-hole geophysical methods using wire-line geophysical instruments may be used

to gather geological and coal quality information in diamond and/or percussion

boreholes. Ad hoc down-hole geophysical applications are important to verify

lithological and structural properties of sedimentary strata in the reserve areas.

5.1.6 Geohydrological survey

Percussion (open-hole) boreholes may be drilled to gather geohydrological information

with specific reference to aquifer yield testing and gathering of water samples for

analytical purposes. Baseline preliminary conceptual groundwater flow models to

estimate inflow rates into a probable underground mining operation using hydraulic

aquifer parameters obtained during aquifer yield-testing will be done after the fieldwork

is completed.

5.1.7 Bulk sampling

Should it be necessary to conduct any bulk sampling operations, an application for

Ministerial approval in terms of Section 20 of the Mineral and Petroleum Resources

Development Act, 2002, which includes an amended Environmental Management Plan

(EM Plan), will be submitted once the necessary studies have been conducted.

5.2 Coal distribution and reserve estimation

Coal distribution and reserve estimation relate to computerized desk studies which

encompass the following main actions:

5.2.1 Data processing and validation

Data obtained during the drilling project needs to be processed and validated versus

stratigraphic, structural and analytical data received and correlated with surrounding

boreholes in the reserve area.

Page 9: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

7

5.2.2 Lithofacies and coal quality modelling

Variations in a stratigraphic unit across the reserve area are illustrated by contoured

maps showing lateral trends of most significant properties. This is done by the

utilization of computerized geological software. Detailed in situ reserve and quality

determinations will then be possible through computer based modelling, and qualitative

and quantitative calculations.

REGULATION 7(1)(h): ALL PLANNED PROSPECTING ACTIVITIES MUST BE

CONDUCTED IN PHASES AND WITHIN SPECIFIC TIMEFRAMES

Please refer to Table 9.1 for a breakdown of proposed prospecting activities.

REGULATION 7(1)(i): TECHNICAL DATA DETAILING THE PROSPECTING

METHOD OR METHODS TO BE IMPLEMENTED AND THE TIME REQUIRED FOR

EACH PHASE OF THE PROPOSED PROSPECTING OPERATION

5.3 Prospecting phases and time frames

Prospecting will take place according to the time-frame presented in Table 5.3 below

and incorporates the information required in respect of Regulations 7(1)(f), 7(1)(h) and

7(1)(i) of the MPRDA.

Page 10: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

8

Table 5.3: Proposed prospecting phases and time frames

Phase Activity Skill(s) required Timeframe Outcome Timeframe for outcome

What technical expert will sign off on the outcome?

Phase1: Invasive Prospecting

Diamond drilling (6 boreholes)

Geologist Month 1-12 Borehole core data Coal core samples Rock core samples Coal core analyses Rock core analyses

Month 1-12 Month 1-12

Geologist Laboratory analyst

Geophysical survey (Optional)

Geophysicist Geologist

Month 1-12 Lithology data Structural data

Month 1-2 Geophysicist

Geohydrological survey (Optional)

Geohydrologist Geologist

Month 1-12 Borehole water yield Water samples

Month 1-12 Geohydrologist

Phase 1: Non-invasive Prospecting

Consultation with landowners

Mining Rights officer

Month 1-12 Legal agreement Month 1-12 Mining Rights officer

Data processing and validation

Geologist Month 1-12 Stratigraphic correct borehole data Analytical correct borehole data

Month 1-12 Month 1-12

Geologist/Database administrator Geologist/Database administrator

Lithofacies and coal quality modeling

Geologist Month 1-12 Contour maps Reserve breakdown

Month 1-12 Geologist/Modeler

Inspection/Consultation with landowners

Mining Rights officer

Month 1-12 Rehabilitation clearance certificate

Month 1-12 Mining Rights officer/ Environmental officer

Phase 2: Invasive Prospecting

Geophysical survey (Optional)

Geophysicist Geologist

Month 13-24 Lithology data Structural data

Month 13-24 Geophysicist

Geohydrological survey (Optional)

Geohydrologist Geologist

Month 13-24 Borehole water yield Water samples

Month 13-24 Geohydrologist

Phase 2: Non-invasive Prospecting

Consultation with landowners

Mining Rights officer

Month 13-24 Legal agreement Month 13-24 Mining Rights officer

Data processing and validation

Geologist Month 13-24 Stratigraphic correct borehole data

Month 13-24

Geologist/Database administrator

Page 11: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

9

Phase Activity Skill(s) required Timeframe Outcome Timeframe for outcome

What technical expert will sign off on the outcome?

Analytical correct borehole data

Month 13-24 Geologist/Database administrator

Lithofacies and coal quality modeling

Geologist Month 13-24 Contour maps Reserve breakdown

Month 13-24 Geologist/Modeler

Inspection/Consultation with landowners

Mining Rights officer

Month 13-24 Rehabilitation clearance certificate

Month 13-24 Mining Rights officer/ Environmental officer

Phase 3: Invasive Prospecting

Directional drilling (Optional)

Geologist Month 25-36 Lithological data Month 25-36

Geologist

Geophysical survey (Optional)

Geophysicist Geologist

Month 25-27 Lithology data Structural data

Month 25-27 Geophysicist

Geohydrological survey (Optional)

Geohydrologist Geologist

Month 25-30 Borehole water yield Water samples

Month 25-30 Geohydrologist

Phase 3: Non-invasive Prospecting

Consultation with landowners

Mining Rights officer

Month 25-36

Legal agreement Month 25-36 Mining Rights officer

Data processing and validation

Geologist Month 25-36 Stratigraphic correct borehole data Analytical correct borehole data

Month 25-26 Month 25-36

Geologist/Database administrator Geologist/Database administrator

Lithofacies and coal quality modeling

Geologist Month 25-36 Contour maps Reserve breakdown

Month 25-36 Geologist/Modeler

Inspection/consultation with landowners

Mining Rights officer

Month 25-36 Rehabilitation clearance certificate

Month 25-36 Mining Rights officer/ Environmental officer

Page 12: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

10

6. REGULATION 7(1)(g): A DESCRIPTION OF THE PROSPECTING METHOD OR

METHODS TO BE IMPLEMENTED

(i) DESCRIPTION OF PLANNED NON-INVASIVE ACTIVITIES:

Non – invasive activities which relate to the various prospecting methods can be

briefly described as follows:

- Consultation with landowners:

Mining Rights Officers from the Sasol Mining Rights and Properties

Department will visit the respective land owners prior to the proposed

prospecting and arrange all issues relating to the envisaged prospecting

programme such as dates, access routes, availability of water, and

rehabilitation of the drill sites and any other items of mutual concern. The

discussion and agreement between the parties will be captured in writing.

- Data processing and validation:

Data obtained during the drilling process needs to be process and validated

versus stratigraphic, structural and analytical data received and correlated

with surrounding boreholes in the reserve area.

o Electronic procession of borehole data

o Validation of lithological data versus analytical data.

o Stratigraphic correlation of coal and dolerite horizons.

o Editing and correction of data on database.

- Lithofacies and coal quality modelling:

Variations in a stratigraphic unit across the reserve area are generated and

illustrated by contoured maps showing lateral trends of most significant

properties. This is done by the utilization of computerized geological

software.

Detailed in situ reserve and quality determinations will then be possible

through computer based modelling, and qualitative and quantitative

calculations.

Page 13: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

11

- Compilation of geology report:

Information obtained during the exploration phase together with computer

generated information is compiled into a geological report.

- Inspection/Consultation with landowner:

Mining Rights Officers from the Sasol Mining Rights and Properties

Department will visit the boreholes during and after prospecting has been

completed. Once confirmation has been obtained that the area had been

properly rehabilitated, sign off will be obtained from the landowners and

compensation paid for any damages caused as a result of the prospecting.

(ii) DESCRIPTION OF PLANNED INVASIVE ACTIVITIES:

- Diamond drilling:

The drill rigs are truck-mounted and equipped with diesel driven engines to

provide power to the drill. A truck fitted with a water tank is used to provide

the water supply for the drilling process. The drill site is not larger than

30 m x 30 m (900 m²) and consists of a drill rig, water pump, caravan and

portable chemical toilet.

Except for the sump required by the drill rig, no excavations will be required.

The dimension of the borehole is NQ (±76 mm) and the average depth of the

coal reserve is estimated to be 170 m.

On completion of the borehole it is cemented from the bottom up.

- Percussion drilling:

The drill site is not larger than 30 m x 30 m (900 m²) and consists of a diesel

powered truck mounted drill rig, a truck transporting drill rods and other

equipment, a compressor and portable chemical toilet.

Rock fragments are blown out the top of the hole and are collected at 1m

depth intervals and arranged on the ground to enable continuous detailed

lithological descriptions of the stratigraphic horizons to be made.

Percussion holes will either be cemented if not further utilized, or will be fitted

with a cap and be used for water levels and water quality monitoring.

Page 14: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

12

- Directional drilling:

The drill site is not larger than 150 m x 150 m (22 500 m²) and consists of a

drilling water sumps, a diesel powered drill rig, a truck transporting drill rods

and various other equipment, a generator, portable offices and chemical

toilets. There are access control and a security fence around the site. On

completion, the site will be rehabilitated to acceptable standards.

Rock fragments are washed out the top of the hole and are sampled at 10m

depth intervals and collected on small bottles and sent to the laboratory for

coal analysis. All percussion holes are sealed with cement up to the depth of

start of coal.

- Geophysical down-hole surveys

The down-hole geophysical survey is done at the borehole site after the hole

has been completed. A range of specialized geophysical tools are lowered

into the open borehole and a range of physical lithological characteristics of

the rock mass or coal are gathered and sent digitally along the cable to a

computer on surface. This data is used to produce a number of profiles

reflecting rock strength coal qualities and structural features for the total

length of the borehole. A single truck is used which contains all equipment

including a mobile generator.

- Geohydrological survey

Percussion (open-hole) boreholes may be drilled to gather geohydrological

information with specific reference to aquifer yield testing and gathering of

water samples for analytical purposes.

Baseline preliminary conceptual groundwater flow model to estimate inflow

rates into a probable underground mining operation using hydraulic aquifer

parameters obtained during aquifer yield-testing. A single truck is used which

contains all equipment including a mobile generator.

Page 15: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

13

(iii) DESCRIPTION OF PRE-/FEASIBILITY STUDIES

The coal seam thickness distribution, lateral extent and quality will be determined

through detailed borehole measurement and laboratory core analysis. Detailed in

situ reserve and quality determinations will then be possible through computer

based modeling, and qualitative and quantitative calculations. A geological report

will be compiled which entails all results obtained during the exploration phase.

Commitment to provide addendums in respect of additional prospecting

activities

I, herewith commit to provide the Department of Mineral Resources with an

addendum in respect of both the EM Plan and Prospecting Work Programme

regarding any future in-fill prospecting required, but not described above, prior to

undertaking such activities. The addendum will cover all the Regulations as per the

Prospecting Work Programme.

I agree that the addendums will provide for similar activities only and if the scope

changes I would be required to apply in terms of section 102 of the MPRDA for an

amendment of the Prospecting Work Programme.

ACCEPT Mark with X X

7. REGULATION 7(1)(j)(i): DETAILS WITH DOCUMENTARY PROOF OF THE

APPLICANT’S TECHNICAL ABILITY OR ACCESS THERETO TO CONDUCT

THE PROPOSED PROSPECTING OPERATION

7.1 Competencies to be employed in terms of the Mine Health and Safety Act

Table 7.1: Schedule of legal appointments COMPETENCIES TO BE EMPLOYED (List the legal appointments that will be made in terms of the Mine Health and Safety Act, appropriate for the type of operation)

To be confirmed

Page 16: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

14

I herewith confirm that I, in Table 7.1 have budgeted and financially provided

for the required skills listed above.

It has to be noted that the legal appointed persons will be full time employees of

Sasol Mining (Pty) Ltd.

CONFIRMED (Mark with an X) X

7.2 List of Appropriate equipment at your disposal (If Applicable)

The services of experienced diamond and percussion drilling contractors will be

utilized for exploration drilling while the SABS laboratory will be appointed to do the

analytical work. The tabled equipment, provided by the drilling contractor, will be

utilized on the drilling sites. Down-hole geophysical surveys will be conducted by

Weatherford. Geohydrological surveys will be conducted by Aquizim.

Table D: Appropriate Equipment Available

Drilling Operations

Drill rig (Diamond/Percussion/Directional)

Caravan (Diamond/Percussion)

Offices and storage rooms (Directional)

Water tanker

Compressor

Auxiliary vehicles and equipment

Other field Operations

Auxiliary vehicles and equipment

7.3 Technical skills provided Free of Charge

7.3.1 Information (CV’s) in respect of skills already acquired

No skills will be provided free of charge, as all personnel except the drilling

contractor and laboratories are employed by Sasol Mining (Pty) Ltd. The resumes

of the relevant project geologists are presented in Annexure C.

Page 17: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

15

Table 7.3: Technical in house skills available

Dr J Sullivan Divisional Geology Manager

32 years experience

S Ndinga Divisional Geologist 15 years experience

P Cronje Manager Mining Rights 7 years experience

H Schoeman Principal Land and Rights Officer

13 years experience

Dr G Nussey Environmental Specialist 15 years experience

7.3.2 Copy of the relevant contractual agreements between the service provider

and the applicant relative to the duration of the planned prospecting period,

where applicable.

The table below provides details of a number of contractors that could be

considered for the work related to this prospecting programme. Black Economic

Empowerment (BEE) is important to Sasol Mining and therefore the BEE status of

relevant contractors, as well as experience, capacity and costs, will be considered

during the appointment of contractors. Once the application for the renewal has

been granted, the necessary appointments will be made through the Sasol Shared

Services procurement department.

Table 7.3: List of potential service providers

FIRM PHYSICAL ADDRESS

POSTAL ADDRESS

PHONE MOBILE

DRILLCON (Pty) Ltd

33 Drakensberg street SECUNDA

P O Box 6265 SECUNDA 2302

(017) 631 2058 082 336 6774

AFRIDRILL (Pty) Ltd

18 Papendorf Street SECUNDA

P O Box 4443 SECUNDA 2302

(017) 634 2526 083 656 6930

SABS Laboratory 8 Bunsen Street SECUNDA

P O Box 6740 SECUNDA 2302

(017) 631 0320 072 429 7289

PERCUSSO-BOR (Pty) Ltd

Kromvlei Farm ORANJEVILLE

P O Box 9 ORANJEVILLE 1995

(016) 351 1707 083 630 0416

WEATHERFORD 30A Zeiler street PRETORIA WEST

P O Box 19307 PRETORIA WEST 0117

(012) 327 1371 082 456 0433

ITASCA AFRICA 16 Orange Street, SUNNYSIDE, Auckland park 2092

P O Box 291375 MELVILLE 2109

(011) 482 8840

ROCKLAB 230 Albertus Street, LA MONTAGNE, PRETORIA

P O Box 72928 LYNNWOOD RIDGE 0040

(012) 481 3894 082 727 9315

Page 18: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

16

FIRM PHYSICAL ADDRESS

POSTAL ADDRESS

PHONE MOBILE

AQUISIM 385 Colorado Street Faerie Glen PRETORIA

P O Box 1490 Faerie Glen 0043

(012) 991 2404 082 784 2023

8. REGULATION 7(1)(j)(ii): DETAILS WITH DOCUMENTARY PROOF OF A

BUDGET AND DOCUMENTARY PROOF OF THE APPLICANT’S FINANCIAL

ABILITY OR ACCESS THERETO

Attached hereto, please find Annexure D as proof of Sasol Mining’s financial ability

to execute the PWP.

9 REGULATION 7(1)(k): A COST ESTIMATE OF THE EXPENDITURE TO BE

INCURRED FOR EACH PHASE OF THE PROPOSED PROSPECTING

OPERATION)

It has to be noted that this prospecting right has an existing approved environmental

management plan, and therefore the cost of the EM Plan is not budgeted for by the

prospecting project. Similarly, the prefeasibility studies are conducted by full time

personnel of Sasol Mining, and thus no additional budgeting is required. Please

refer to Table 9.1 for a breakdown of the estimated costs.

Page 19: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

17

Table 9.1: Cost estimate for the proposed prospecting

ACTIVITY YEAR 1 YEAR 2 YEAR 3

Expenditure Expenditure Expenditure

Number of boreholes 6 0 0

PHASE 1 (12 months)

Diamond drilling (incl rehab costs) R 1 080 000

Analytical cost R 150 000

Annual prospecting fees R 15 160

Other cost, Geohydrology, geophysical etc.

R 50 000

Owner compensation R 21 000

Salary – Geology **

PHASE 2 (12 months)

Diamond drilling (incl rehab costs) R 0

Analytical cost R 0

Annual prospecting fees R 18 192

Other cost, Geohydrology, geophysical etc.

R 0

Owner compensation R 0

Salary – Geology **

PHASE 3 (12 months)

Diamond drilling (incl rehab costs) R 0

Analytical cost R 0

Annual prospecting fees R 21 224

Owner compensation R 0

Salary – Geology ** R 0

EIA and EMP for mining right application

R 0

Pre-feasibility studies, investment decision

R 0

Annual Total R 1 316 160 R 18 192 R 21 224

Total Budget R 1 355 576

10 FINANCIAL ABILITY TO GIVE EFFECT TO THE WORK PROGRAMME

10.1 The amount required to finance the Work Program.

As indicated in Table 9.1 above, an amount of R1.356 million is required to finance

the renewal PWP over the three years.

10.2 Detail regarding the financing arrangements

In terms of Regulation 5(1)(j) promulgated under the MPRDA, it is a requirement to

provide a budget and documentary proof of Sasol Mining’s financial ability or access

thereto, to conduct the proposed prospecting activities. In this regard, as provided

for in Regulation 5(1)(j)(iii), an amount of R 1 355 576 has been allocated by

Sasol Mining (Pty) Ltd on 14 October 2015, to conduct prospecting activities in

respect of this renewal PWP. A copy of the confirmation is attached as

Page 20: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

18

Annexure D. The Sasol Mining prospecting budget is reviewed on an annual basis

and if deemed necessary, and based on the outcome of the prospecting activities,

this budget can be increased.

10.3 Confirmation of supporting evidence appended

Sasol Limited, of which Sasol Mining (Pty) Ltd is a subsidiary, has a strong financial

standing with the total annual turnover of R 171 782 million and an operating profit

of R 41 147 million, with the Sasol Mining equivalent figures recorded at

R 14 134 million and R 2 453 million, as at 30 June 2014.

11 Confirmation of the availability of funds to implement the proposed project.

12 I herewith confirm that I have budgeted and financially provided for the total

budget as identified in Regulation 7(1)(k)

Confirmed (Mark with an X) X

Page 21: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

19

13 REGULATION 7(1)(m): UNDERTAKING, SIGNED BY THE APPLICANT, TO

ADHERE TO THE PROPOSALS AS SET OUT IN THE PROSPECTING WORK

PROGRAMME

Table: 13.1

Herewith I, the person whose name and identity number is stated below,

confirm that I am the Applicant or the person authorised to act as

representative of the Applicant in terms of the resolution submitted with the

application, and undertake to implement this prospecting work programme

and adhere to the proposals set out herein.

Full Names and Surname Abraham Stephanus Potgieter

Identity Number 531018 5054 085

AS Potgieter

Head of Mining Rights and Properties

15 October 2015

END

Page 22: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

20

Annexure A

Page 23: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

21

Annexure B

Property Portion Magisterial

district Title deed number

Surface owner SG code

Blesbokspruit 90 IS 1 Highveld Ridge T123959/1999 Kwagga Ou Werf Trust T0IS 000 000 000 090 000 01

Blesbokspruit 90 IS 8 Highveld Ridge T131749/2006 Kwagga Ou Werf Trust T0IS 000 000 000 090 000 08

Blesbokspruit 90 IS 15 Highveld Ridge T53108/1984 Erasmus MSF T0IS 000 000 000 090 000 15

Blesbokspruit 90 IS 16 Highveld Ridge T47326/1981 A Erasmus & Seuns CC T0IS 000 000 000 090 000 16

Blesbokspruit 90 IS 17 Highveld Ridge T7159/1989 A Erasmus & Seuns CC T0IS 000 000 000 090 000 17

Blesbokspruit 90 IS 18 Highveld Ridge T2830/2010 Coetzer DJ T0IS 000 000 000 090 000 18

Blesbokspruit 90 IS 19 Highveld Ridge T110009/2007 Dataforce Trading 264 (Pty) Ltd T0IS 000 000 000 090 000 19

Blesbokspruit 90 IS 20 Highveld Ridge T110009/2007 Dataforce Trading 264 (Pty) Ltd T0IS 000 000 000 090 000 20

Blesbokspruit 90 IS 21 Highveld Ridge T110009/2007 Dataforce Trading 264 (Pty) Ltd T0IS 000 000 000 090 000 21

Blesbokspruit 90 IS 22 Highveld Ridge T8760/2009 Mahlambi Communal Prop Assoc

T0IS 000 000 000 090 000 22

Blesbokspruit 90 IS 23 Highveld Ridge T53108/1984 Erasmus MSF T0IS 000 000 000 090 000 23

Blesbokspruit 90 IS 24 Highveld Ridge T53106/1984 Erasmus MSF T0IS 000 000 000 090 000 24

Blesbokspruit 90 IS 28 Highveld Ridge T53106/1984 Erasmus MSF T0IS 000 000 000 090 000 28

Rolspruit 127 IS Rem Highveld Ridge T18562/1995 Claasens SEW T0IS 000 000 000 127 000 00

Rolspruit 127 IS 1 Highveld Ridge T55552/2001 Van Niekerk MM T0IS 000 000 000 127 000 01

Rolspruit 127 IS 5 Highveld Ridge T4875/2013 Kriek & van den Heever CC T0IS 000 000 000 127 000 05

Page 24: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

22

Annexure C

Page 25: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

23

Page 26: NAME OF APPLICANT: Sasol Mining (Pty) Ltd REFERENCE … › sasol2017 › Appendix 3B. PWP_Blesboks... · instruments and methods may be used to confirm lithological types within

MP 30/5/1/1/2/3080 PR

24

Annexure D