shale. However, only a relatively small part of the Waterberg coalfield is shallow enough to be accessed by open pit mining. The Eenzaamheid fault and the Daarby fault divide the Waterberg coalfield into open pit mineable and underground mineable resources. Grootegeluk Grootegeluk is located in the narrow band between these faults. South of the Eenzaamheid fault and in between the Daarby fault and the Zoetfontien fault, in the north, coal is found from 250 m below surface and deeper. The Grootegeluk coal mine is the largest open cast coal mine together with beneficiation plants of its kind in the world. It produces more than 17 million tonnes of coal product per year and the mine provides iron and ore industries with high grade metallurgical coal for iron and steel production. The low grade coal is supplied to Eskom's Matimba Power Station. Besides Exxaro, Anglo Coal, Sekoko Coal and Resgen mining houses also have operations in the Lephahale area. Electricity production Lephalale hosts two of South Africa's power stations: Eskom's Matimba Power Station. Matimba, the Tsonga word for power, is designed to generate 4,000 MW and is the largest direct dry-cooled power station in the world. Coal is supplied to Matimba by means of a conveyor belt system from Grootegeluk mine. Eskom is commissioning a new power station called Medupi. Medupi will have a capacity of 4,800 MW by the time its last unit is commissioned c. 2018. Lephalale development projects Exxaro's Grootegeluk Medupi Expansion Project will, in terms of an agreement with the power utility, enable the Grootegeluk mine to supply the Medupi power station with an average 14,6Mtpa of power station coal over the next 40 years. Exxaro's Thabametsi, a third coal project for Exxaro in the Waterberg, with construction planned to reach its peak in 2021. The project will employ 1,500 people. Thabametsi translates into ‘water mountain’ and is situated about 13 km from Grootegeluk coal mine. When completed an average of 970 people will be employed at the mine which will have a life-span of some 30 years. Exxaro's proposed Independent Power Producer (IPP) Waterberg Power Station. The Mokolo and Crocodile Water Augmentation Project (MCWAP) entails the phased construction of two main bulk raw water transfer systems, as well as associated infrastructure to meet the new power station, mines, and domestic demands. The main components of the scheme are abstraction weirs, pump stations, pipelines and balancing storage.