| Wed 12 Nov 2008, 10:33 | | CZA - Coal of Africa Limited - IPP Submissions Pre-Qualified By Eskom |
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CZA
CZA
CZA - Coal of Africa Limited - IPP Submissions Pre-Qualified By Eskom
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`)
12 November 2008
IPP SUBMISSIONS PRE-QUALIFIED BY ESKOM
Coal of Africa Limited ("CoAL" or "the Company") is pleased to announce that
both of the Company`s recent proposals, submitted jointly with Independent Power
Producers ("IPP`s") in response to South African utility, Eskom`s tender for the
independent generation of base load power, have been unconditionally pre-
qualified.
CoAL made two separate joint submissions to supply coal to a proposed IPP
located close to each of the Company`s Makhado and Vele coking coal projects.
In both cases, the coal supplied would be a "middlings" product, a lower quality
coal produced additional to the primary coking coal product. Importantly, the
successful economics of both coking coal projects are in no way dependent upon
CoAL`s ability to sell the middlings fraction, but it does represent substantial
upside in the event that the IPP`s were ultimately successful.
Eskom anticipates that the IPP programme will increase South Africa`s power
generation by up to 4,500 MW by 2017, thereby reducing prevailing electricity
supply shortages. CoAL`s two submissions formed part of 23 pre-qualified tenders
shortlisted by Eskom. The pre-qualified companies will be invited to submit
their proposals at the end of November 2008, with contracts to be concluded by
the first quarter of 2010. The "Build, Own, Operate" contracts are expected to
last for 25 years, with the plants expected to start generating electricity
between 2012 and 2017.
At the Makhado project, CoAL teamed up with AES Energy Developments ("AES") and
at the Vele project, the Company submitted jointly with Mulilo Energy (Pty) Ltd
("Mulilo Energy") and China Railway Construction Corporation ("CRCC").
AES
As one of the world`s largest power companies, AES owns and operates a diverse
and growing portfolio of generation and distribution businesses with the
capacity to service 100 million people worldwide. AES`s power plants encompass
a broad range of technologies and fuel types, from coal and gas to renewables
such as wind, hydro and biomass. AES utilities power major cities, from Sao
Paulo to Indianapolis to Douala. Beyond power, AES also mines coal, turns
seawater into drinking water, and is committing significant resources to
alternative sources of energy to ensure a sustainable future. It is also
building a climate change business to develop projects that offset greenhouse
gas emissions and produce emissions offset credits.
CRCC
CRCC is an organisation that has built expertise in various areas including
project contracting, design and consulting, real estate, capital operation and
logistics. CRCC is one of the largest and most powerful multiple construction
corporations in China and the world. The corporation has complete and
comprehensive credentials in the construction industry chain.
Mulilo Energy
Mulilo Energy was formed in 2007 as the project company in South Africa for the
construction of CRCC built power stations. Mulilo Energy is the exclusive
partner in South Africa for the CRCC and the China Railway 15th Bureau Group
(CR15G). The Directors of Mulilo Energy are well acquainted with their Chinese
partners, having first established contact with the Chinese energy industry in
1989. Since then, they have jointly completed a number of high technology
projects in South Africa and China.
AUTHORISED BY
Simon Farrell
Managing Director
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" or "the Company"), is primarily focused on the
acquisition, exploration and development of metallurgical and thermal coal
projects. CoAL`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, CoAL 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: 12/11/2008 10:33:54 Produced by the JSE SENS Department.
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