GEOLOGY

The subjacent geology of the Lephalale region consist of quartzite
sandstone of the Waterberg Super Group in the south whilst Karoo Super Group is
found to the north and east, consisting of sandstone and shale.

Large coal deposits are found in the area, whilst diamonds are found at The Oaks Mine near the small town of Swartwater. Phosphates are mined at the Glenover Mine near Steenbokpan. Fluor spar is also found in the Lephalale area.

The Waterberg coal field was concealed in the heart of the South African bushveld for millions of years. Grootegeluk Mine took the challenge to unleash this hidden treasure, which bold step changed the course of history of the area.

The coal seams mined at the Grootegeluk Mine form part of the Upper (Volksrust formation) and Middle Ecca (Vryheid formation) with an average coal thickness of 115 meters. The Upper Ecca is on average 60 meters thick and comprises interblended shale and bright coal successions whilst the Middle Ecca, on average 50 meters thick, forms the lower part of the coal deposit and contains dull coal, carbonaceous shale, as well as grit and sandstone.

The coal field is fault-bounded along its northern and southern limits. The Eenzaamheid-fault, with a displacement of at least 250 meters, forms the southern boundary, whilst the northern boundary is formed by the Zoetfontein-fault. The Daarby-fault, with a displacement of 250 meters, divides the Waterberg coal field into 2 areas: a shallow western area where it is possible to obtain the coal through open pit mining methods and a deep north-eastern area where the coal occurs at a depth of 250 meters below surface. Although this coal field covers a relatively small surface area, it is one of South Africa`s most important coal fields in terms of insitu reserves.

All the rivers, including the most prominent Mokolo and Palala rivers drain northwards into the Limpopo river.