| Tue 2 Feb 2010, 15:18 | | CZA - Coal of Africa Limited - Award of new order mining rights |
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CZA
CZA
CZA - Coal of Africa Limited - Award of new order mining rights
Coal of Africa Limited
(previously, "GVM Metals Limited")
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
JSE Share code: CZA
ASX Share code: CZA
ISIN AU000000CZA6
(`CoAL` or `the Company`)
AWARD OF NEW ORDER MINING RIGHTS
CoAL is pleased to announce that it has today, Tuesday 2 February 2010, been
granted by the South African Department of Mineral Resources ("DMR"):
- an unconditional New Order Mining Right ("NOMR") for the Vele coking coal
project near Musina in the Limpopo Province in which CoAL currently holds
an 80 per cent interest and has an agreement in place to acquire the
remaining 20 per cent; and
- a conditional NOMR for the Holfontein coal project near the middle of
Sasol`s Secunda coal production area. The Holfontein NOMR is conditional
on delivery of certain documents to the DMR.
CoAL expects to execute both rights with the DMR by the end of February 2010.
Simon Farrell, Managing Director of CoAL, commented, "This is one of the
biggest milestones in the Company`s history and allows us to proceed toward
development of our Vele coking coal project immediately upon execution of the
mining licence."
Authorised by
SIMON J FARRELL
Managing Director
2 February 2010
Sponsor
Macquarie First South Advisers (Pty) Limited
CoAL
Simon Farrell Tel: +61 (0) 417 985 383
Blair Sergeant Tel: +27 (0) 11 785 4518
Azure Capital Tel: +61 (0) 8 6263 0888
Geoff Ward
Ryan Rockwood
Evolution Securities Tel: +44 (0) 20 7071 4300
Simon Edwards
Chris Sim
Conduit PR Tel: +44 (0) 20 7429 6603
Jos Simson
Leesa Peters
Macquarie First South Advisers Tel: +27 (0) 11 583 2000
Melanie de Nysschen
Thembeka Mgoduso
About CoAL:
Coal of Africa Limited ("CoAL") is an AIM/ASX/JSE listed coal mining and
development company operating in South Africa. CoAL`s key projects include the
Woestalleen Colliery, the 113 million tonne (`mt`) Mooiplaats thermal coal
mine, the 656 mt Vele coking coal project and the 1 billion tonne Makhado
coking coal project.
The Mooiplaats coal mine commenced production in 2008 and is currently ramping
up to produce 2 mtpa. CoAL`s Vele and Makhado coking coal projects are
expected to start production in H1 2010 and Q4 2011 respectively producing an
initial 2 mtpa rising to a combined annual output of 10 mtpa of coking coal.
In 2010, CoAL completed the ZAR650m acquisition of NuCoal Mining (Pty) Limited
("NuCoal"), a thermal coal producer with assets in South Africa in close
proximity to CoAL`s Mooiplaats mine. NuCoal owns the Woestalleen Colliery,
which has a number of off-take contracts in place and produces 2.5Mtpa of
saleable coal for domestic and export markets. NuCoal also owns two
beneficiation plants, one fully operational mine producing 350kt per month of
run of mine ("ROM") coal and has recently commenced production at a second
mine.
Date: 02/02/2010 15:18:21 Produced by the JSE SENS Department.
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