Exxaro Inks Second Agreement With RAL

The project entails upgrading from gravel to tar road, which stretches 9.56km. It is estimated to take 10 months to construct with completion scheduled during the 2019/20 financial year. Exxaro will contribute 100% of the R100m estimated project budget.

This is the second strategic partnership between Exxaro and RAL since 2015. The first project, which is still in the implementation stage, is due for completion by November 2018. This is for the upgrade of several roads connecting Ga-Seleka villages to the Commercial Centre of Lephalale which was jointly identified through the Integrated Development Plan (IDP) of the Lephalale Local Municipality. The cost of this project is R250m of which Exxaro’s contribution amounts to R71.2m or 28.5% towards construction with RAL carrying the balance of R178.8m.

Exxaro’s executive head of coal operations, Dr Nombasa Tsengwa, explained that, “the combined oversight role that RAL and Exxaro have through their respective project managers and engineers has been professional and makes for a successful partnership.” Exxaro decided to fund this project not only because it is a mandatory requirement for Exxaro and future project developments, but also because it is not currently provided for in the RAL budget, she added.

“We are, therefore, making a steady dent in the battle against the road infrastructure backlog that has been the bane of the province,” said Road Agency Limpopo CEO, Maselaganye Matji.

The proposed road infrastructure project will facilitate commercial development in Lephalale and contribute significantly towards reducing the cost of doing business in the area. Furthermore, it will predominantly assist with easy access to the operations whilst also benefitting all other road users in the area by reducing travelling time and improving road safety for the communities.