| Wed 15 Oct 2008, 9:00 | | CZA - Coal of Africa Limited - Vele & Mooiplaats Project Update |
|
CZA
CZA
CZA - Coal of Africa Limited - Vele & Mooiplaats Project Update
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`)
15 October 2008
VELE & MOOIPLAATS PROJECT UPDATE
Coal of Africa Limited ("CoAL" or "the Company") is pleased to announce that it
has lodged a New Order Mining Right Application with the Department of Minerals
and Energy in Polokwane for its Vele coking coal Project in Limpopo. This is in
line with CoAL`s schedule to establish a large opencast mine which will have the
capacity at full output to deliver 5 million tonnes of coking coal per annum to
the South African domestic and international export markets.
Meanwhile, at the Mooiplaats thermal Project in Mpumalanga, the coal seam has
been exposed in the boxcut, surface infrastructure continues to be established,
the Company`s first continuous miner is ready for delivery, the mining contract
has been signed and CoAL remains on track to commence mining activities before
the end of the 2008 calendar year.
Simon Farrell, Managing Director of CoAL, commented: "Despite the global turmoil
in financial markets, we are rapidly moving forward and meeting all of our
published development milestones.
Alone amongst the major commodities, coal prices are holding up quite well.
Whilst there has been a retreat on thermal coal prices, coking coal, which is
our main focus, continues to enjoy spot prices well above the current year`s
contract prices. The Company`s cash position is very strong and by the time we
bring Mooiplaats into production, we will still have close to $A200 million in
cash and no debt. On the basis of our coal price forecasts, we expect to meet
all of the capital expenditure to complete full ramp up of Mooiplaats out of
operating cash flows."
AUTHORISED BY
SHANNON COATES
Company Secretary
For more information contact:
Simon Farrell, Managing Director
Coal of Africa
+61 417 985 383 or +61 8 9322 6776
Petronella Gorrie
The Event Shop
+27 82 827 8815
Jos Simson / Gareth Tredway
Conduit PR
+44(0) 20 7429 6603
Olly Cairns / Romil Patel
Blue Oar Securities Plc
+61 8 6430 1631/ +44(0) 20 7448 4400
About CoAL:
Coal of Africa Limited ("CoAL") is primarily focused on the acquisition,
exploration and development of metallurgical and thermal 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.
www.coalofafrica.com
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 15/10/2008 09:00:02 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
