SUMO Coal

The Energy Behind Energy

Sumo Coal (Pty) Ltd. has been operating in the coal industry since its inception in 1995. The dynamic company, based in South Africa, has steadily expanded and established a number of subsidiaries in drilling and exploration, coal mining, beneficiating and marketing companies. Sumo owns and runs a coal preparation plant, from which operations and maintenance work has been outsourced to E+PC Metallurgical Operations (A Division of E+PC Engineering & Projects Company).

During its history, the company has consistently managed and owned its own operations, and supplied coal into a primarily domestic market. The company endeavours to meet Eskom’s ever-growing demand for steam coal, and actively sup­plies international markets through the ports of Maputo, Durban and Richards Bay Coal Terminal.

According to CEO Abubekir Salim, “Sumo is a cosmopolitan, international company involved in from exploration all the way to shipping coal.  We believe our employees’ happiness is close to our company’s success, and without them, we can achieve nothing.”

Portfolio

Sumo works in South Africa with an operating mine in Middleburg, Mpumalanga. The company has been working in the area since the mine was started and over the years has built its portfolio there in order to achieve economies of scale. The mine, situated in the known Highveld coalfield, is close to two rail lines: Rietkuil and Pan.

In order to grow their business, Sumo Coal has formed entities to actively operate indepen­dently—optimizing value throughout the mining value chain by offering “everything required, from the beginning of exploration to shipment,” ac­cording to Salim. Sumo’s subsidiaries are com­mitted to help build Sumo into a global mining resources company. Nonya Mining, a subsidiary of Sumo, is a drilling and exploration entity with a team of staff dedicated for exploration initiatives. Nonya provides a value-added service to Sumo by being the in-house specialists for drilling and exploration while Sumo expands its growing port­folio. Nonya, in addition to doing work for Sumo, also retains contracts with external companies.

Londani Coal is a mining subsidiary of Sumo Coal that is solely responsible for mine operations. Based in Middleburg, Londani is currently actively mining in the area and plays a key role in the Sumo strategy as the company spans from drilling to exploration, mining and coal beneficiation.

Salim has major plans to continue to grow Sumo. “We would like to become an international coal mining company, which is why we currently have two exploration projects in Indonesia, and marketing rights in Russia. We are planning on becoming an international diversified mining company, and to that end we are planning to get involved in copper in Zambia and hopefully gold in Zimbabwe. By the end of 2010, our target it to become a diversified company,” he explains.

Safety and Environment

As the company grows, Sumo focuses on keeping a zero fatality rate in its mines, ensuring incidents and injuries are avoided, and also encouraging positive team leadership behaviour. The company believes in “instilling a culture of care amongst employees and contractors” and are guided to comply with the South African Mine, Health and Safety Act (Act 29 of 1996), as they are required to record and report all accidents.

The environment, and safely moving within it, is a key priority for Sumo. The company is committed to ensuring that mining and benefici­ation is done in an environmentally sustainable way. The company’s environmental management plans are covered by legislation mandated in the Constitution of South Africa, 1996 (Act 108 of 1996), including the following acts: The Min­eral and Petroleum Resources Development Act (Act 28 of 2002),  The National Environmental Management Act, 1998 (Act 107 of 1998), The National Water Act, 1998 (Act 36 of 1998), The Environment Conservation Act, 1989 (Act 73 of 1989), The Atmospheric Pollution Prevention Act, 1965 (Act 45 of 1965), The National Envi­ronmental Management: Air Quality Act, 2004 (Act 39 of 2004), The Hazardous Substances Act, 1973 (Act 15 of 1973); and The National Heritage Resources Act, 1999 (Act 25 of 1999). Before a coal mine is opened, studies of the land to be used are done several years before construction, in order to define existing possible issues. Studies examine the impact of mines on surface and ground water, soil, local land use, native vegetation and wildlife.

The findings are reviewed before a mining license is awarded by the particular government authorities (in Sumo’s case, DME and DEAT). The company understands the importance of land rehabilitation, therefore a reclamation plan is designed and approved before each mine is constructed, and covers the period after which mining has been completed. According to the Salim, “Making our long-term clients happy is our top priority, while at the same time, mak­ing sure our environmental responsibilities are in line is crucial, and we leave the places in the way we found them.” He continues, “This world is not just about Sumo, but all of us”.

Sumo’s mine reclamation activities are undertaken gradually. They begin with the shap­ing and contouring of spoil piles, and continue with replacement of topsoil, seeding with grass­es and planting of trees taking place on the mined-out areas. Sumo takes care to “relocate streams, wildlife, and other valuable resources”, stating that this is done to “ensure that re­claimed land can still be used for agriculture, forestry, wildlife habitation and recreation.”

Social investment

Not only is Sumo committed to doing things safely and in an environmentally-friendly man­ner, the company is also committed to being socially responsible and active in the commu­nity as well.

“For Sumo our social responsibility is not about us being a mining company but firstly be­ing a human being and caring for others,” says Salim.  “In our view, our social responsibility for others always has been, and will always be, our priority regardless of economic circumstances.  Reaching out more to communities during the global recession has effects on us a company, and during this time more people need our help and we try out best to assist them.”

Sumo “believes in empowering the nation by giving back”, and sharing its resources with others. The company has identified education as one of the most important pillars in building a successful country, and has made significant contribution towards educational development.

Education

“Sumo’s main priority has always been to invest in education.  We have built, and are building lots of schools, and we get the best teachers and best materials in the classrooms so that the children get the best at all times,” says Salim.

Accordingly, Sumo is building a school in Wil­low Glen, Tshwane Municipality (Pretoria) cover­ing a sizeable area of about 1, 100 hectares. The school will accommodate 400 pupils for both pre and primary education. The South African National Curriculum will be implemented at the school and the focus will be on Mathematics, Science and Computer Studies. Sumo is planning to contribute to boost education, especially in the mentioned learning areas. Sumo will always strive to become a better corporate citizen.

“One of the most important aspects of Sumo’s culture is we do not do anything for window dressing,” says Salim. “Life has much more meaning than Sumo’s success in the financial sense, but we believe the real success for Sumo is to help people so that they can have a better future.  Is there a better way to invest other than education?”

Indeed, with a clearly-defined strategy to boost community and business initiatives, and a genuine concern for issues outside its immedi­ate bottom line, Sumo is sure to succeed into the New Year.  

www.sumocoal.com

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