OC2A Project
Location: Kriel, Mpumalanga, South Africa
Permit Holder: 2 Seam (Pty) Ltd
Mining Contractor: Genet Mining
Project Value: Over 500,000 tonnes of coal reserves
Timeline: March 2020 – March 2021
Synopsis
The OC2A Project marked Transvaal VC’s second strategic investment, targeting the development of a box cut at the historic Kriel coalfields. Operated under a mining right held by 2 Seam (Pty) Ltd and executed by Genet Mining, the area had been previously mined underground during the 1940s–1950s.
Shortly after capital deployment, the project faced unforeseen disruption due to the national COVID-19 lockdowns from March to October 2020. During this period, only coal mines supplying Eskom were permitted to operate, delaying progress.
Upon resumption in October 2020, operations were again impacted—this time by flooding from underground water channels connected to historical workings. Demonstrating flexibility and strategic foresight, the project team leveraged the extensiveness of the 2 Seam mining right to shift operations to adjacent pits—OC4 and subsequently OC4A—where production successfully resumed.
Lessons Learned & Institutional Growth
This project further reinforced our capacity for adaptive project management and highlighted the need for proactive environmental risk mitigation, especially in previously mined terrains. It also validated the importance of investing in scalable rights and maintaining strong relationships with experienced contractors like Genet Mining.
Key Takeaways for Investors
Resilience in Crisis: Effective navigation through a global pandemic and natural disruptions without loss of strategic position.
Strategic Asset Depth: The extensiveness of the mining right allowed for operational continuity despite setbacks.
Execution Confidence: Demonstrated capability to rapidly re-scope and re-initiate production under pressure.
Forward Momentum: OC2A, OC4, and OC4A now form part of a broader, scaled up project portfolio that we invested in from 2020 under the same mining right by 2 Seam (Pty) Ltd.
