| Fri 7 May 2010, 8:06 | | CZA - Coal of Africa Limited - Potential effects of Australian resource super |
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CZA
CZA
CZA - Coal of Africa Limited - Potential effects of Australian resource super
profit tax
Coal of Africa Limited
(previously, "GVM Metals Limited")
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
JSE/ASX/AIM Share code: CZA
ISIN AU000000CZA6
("CoAL" or the "Company")
POTENTIAL EFFECTS OF AUSTRALIAN RESOURCE SUPER PROFIT TAX
Further to the announcement by the Australian Government on 3 May 2010, Coal,
the AIM/ASX/JSE listed coal development and mining company operating in South
Africa (ticker: CZA), has received queries from shareholders as to the potential
effects of the proposed Resource Super Profit Tax ("RSPT"). The underlying
intention of the RSPT is the levying of tax on profits arising from the
exploitation of non-renewable resources located in Australia.
CoAL has consulted its advisors and, as the Company has no operational projects
in Australia, it expects no increased taxation charges resulting from the
implementation of the RSPT.
Authorised by
SIMON J FARRELL
Managing Director
Johannesburg
7 May 2010
JSE Sponsor
Macquarie First South Advisers (Pty) Limited
Contacts
CoAL
Simon Farrell
Blair Sergeant
Tel: +61 (0) 417 985 383
Tel: +27 (0) 11 785 4518
Azure Capital
Geoff Ward
Ryan Rockwood
Tel: +61 (0) 8 6263 0888
Evolution Securities
Simon Edwards
Chris Sim
Tel: +44 (0) 20 7071 4300
Conduit PR
Jos Simson
Leesa Peters
Tel: +44 (0) 20 7429 6603
Macquarie First South Advisers
Melanie de Nysschen
Annerie Britz
Manisha Ramlakhan
Tel: +27 (0) 11 583 2000
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 (including resources to be acquired pursuant to the Rio Tinto farm swap
arrangements).
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 Q3 2010 and Q1 2012 respectively, collectively 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 processes 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 ROM coal and has
recently commenced production at a second mine.
CoAL currently has 1 Mtpa export capacity at the Matola Terminal, increasing to
3 Mtpa on completion on completion of the next phase of expansion at the
terminal. CoAL also has the option to participate in further expansion at the
Matola Terminal, which is expected to increase the capacity at the terminal by
10 Mtpa.
Date: 07/05/2010 08:06:01 Produced by the JSE SENS Department.
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