| Wed 20 Feb 2008, 9:02 | | CZA - Coal of Africa Limited - Rail cooperation agreement |
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CZA
CZA
CZA - Coal of Africa Limited - Rail cooperation agreement
Coal of Africa Limited
(previously, "GVM Metals Limited")
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
Share code on the JSE Limited: CZA
ISIN AU000000CZA6
Share code on the Australian Stock Exchange Limited: CZA
ISIN AU000000CZA6
(`CoAL` or `the Company`)
RAIL COOPERATION AGREEMENT
Coal of Africa Limited (ticker "CZA"), the AIM/ASX/JSE listed coal development
company operating in South Africa, is pleased to advise that it has signed a
Cooperation Agreement with Transnet Freight Rail (TFR) and is engaged in ongoing
discussions relating to the development of a pre-feasibility study for the rail
conveyance of export coking coal from the Company`s Thuli and Baobab Coal
Projects.
TFR is the largest division of Transnet, the South African Government owned rail
and freight organisation. TFR maintains an extensive rail network across South
Africa that connects to other rail networks in the sub-Saharan region, with its
rail infrastructure representing about 80% of Africa`s total. TFR includes a
specialised Coal unit that provides world class transport for South Africa`s
export coal from the Mpumalanga coalfields to the Richards Bay coal terminal.
The Cooperation Agreement has formalised the interaction between CoAL and TFR in
order for CoAL to acquire freight rights for the transportation of its planned
export coking coal to Richards Bay and Maputo ports.
CoAL has indicated that it will require rail capacity for the following export
tonnage:-
* 2009 - 1 to 1.5 Mt PA
* 2010 - 4 to 5 Mt PA
* 2011 - 4 to 5 Mt PA
* 2012 - 10 Mt PA
TFR will assist CoAL in acquiring freight rights for the requested rail
capacity. Such facilitation will include the allocation of appropriate train
slots, the provision of appropriate wagons and locomotives, the offering of
commercially competitive freight rates and freight operations under Service
Level Agreements ("SLA`s") benchmarked against world class competitors.
TFR and CoAL will be working together to finalise the outstanding issues,
conclude the necessary due diligence and agree all requisite documentation as
soon as possible. TFR and CoAL undertake to conduct the negotiations in good
faith and in an attempt to complete the pre-feasibility study by the end of May
2008.
Yours sincerely,
SIMON J FARRELL
Managing Director
20 February 2008
For more information contact:
Simon Farrell, Managing Director
CZA +61 417 985 383 or +61 8 9322 6776
Petronella Gorrie
The Event Shop +27 82 827 8815
Jos Simson/ Arabella Hobbs/ Leesa Peters
Conduit PR +44(0) 20 7429 6603
Olly Cairns / Romil Patel
Blue Oar Securities Plc +61 8 6430 1631 or +44(0) 20 7448 4400
About CoAL:
Coal of Africa Limited ("CoAL"), formerly GVM Metals Limited, is primarily
focused on the acquisition, exploration and development of thermal and
metallurgical coal projects. The Company`s key projects, along with its leading
metals processing company NiMag Group (Pty) Ltd are in South Africa. The Company
was incorporated in Western Australia and listed in 1980. Since 2005, the
Company has also listed on both the AIM and JSE markets, allowing further growth
in the Company`s coal assets.
Date: 20/02/2008 09:02:57 Produced by the JSE SENS Department.
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