| Mon 17 Nov 2008, 9:55 | | CZA - Coal of Africa Limited - Update On Mooiplaats Coal Project |
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CZA
CZA
CZA - Coal of Africa Limited - Update On Mooiplaats Coal Project
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`)
17 November 2008
UPDATE ON MOOIPLAATS COAL PROJECT
Coal of Africa Limited ("CoAL" or "the Company") is pleased to provide the
following update on progress of production at its Mooiplaats thermal coal
project in South Africa:
Mining
Blasting of the access ramp floor has been completed, and concreting is in
progress. Boxcut walls are being supported and the first continuous miner is
expected to commence cutting of the underground coal portals during the latter
half of November 2008, at which time the Company also expects to take delivery
of its second continuous miner.
Coal Processing Plant and Infrastructure
Rain has caused some delays in civil work, however this is not expected to have
a major impact on the construction schedule. Processing structures are expected
to be erected on site during Q1 2009, with commissioning by March 2009 and first
sales to take place by the end of H1 2009. Water allocation for the project is
currently being reviewed by the Department of Water Affairs and Forestry (DWAF),
together with Eskom. Power generating sets, transformers and substations have
been delivered, as well as several conveyor drive components. Surface
infrastructure is under construction and is expected to be completed by the end
of Q1 2009.
Logistics
Road construction is progressing well and is anticipated to be completed by the
end of January 2009.
Successful discussions were held with a local coal producer to obtain interim
access to rail loading facilities, together with the proposed processing of a
2,000 tonne bulk sample of coal from the first underground production to assess
lean coal qualities for marketing purposes.
Negotiations with Transnet Freight Rail are close to completion and the Company
remains confident that it will secure adequate rail allocation to match the
already secured port capacity at the dry bulk terminal at Richards Bay.
Managing Director, Simon Farrell commenting on the Mooiplaats progress said, "I
am pleased to report continued progress at the Mooiplaats coal project, largely
in line with scheduled timing. Cutting of the underground coal portals will
commence shortly, and the second continuous miner is scheduled for handover on
24th November.
These developments leave us on track for commissioning by March 2009 and first
sales to take place by the end of H1 2009."
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 Mooiplaats:
The Mooiplaats coal project is a series of adjacent `farms` comprising roughly
16,000ha adjacent to the Camden power station in the Mpumalanga province in
South Africa. The first two continuous miners are expected to be cutting coal
by the end of the 2008. Following ramp up, a total of seven continuous miners
are expected to produce 3.5 to 4 million ROM tonnes per year by mid 2010.
The Company has secured long term port allocation for the export of coal mined
at Mooiplaats through the Richards Bay dry bulk terminal operated by Grindrod.
The throughput agreement provides CoAL with an allocation of 900,000 tonnes of
coal per annum commencing in 2009 and the potential to increase its export
capacity to 3 million tonnes per annum once the terminal expansion has been
completed.
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: 17/11/2008 09:55:01 Produced by the JSE SENS Department.
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