| Mon 2 Aug 2010, 7:05 | | CZA - Coal of Africa Limited - Response to media article regarding Vele Colliery |
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CZA
CZA
CZA - Coal of Africa Limited - Response to media article regarding Vele Colliery
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")
RESPONSE TO MEDIA ARTICLE REGARDING VELE COLLIERY
CoAL, the coal mining and development company operating in South Africa and
listed on the AIM, ASX and JSE, notes the recent press article published by
Reuters on 30 July 2010 regarding comments made by the South African Minister of
Water and Environmental Affairs, Ms Buyelwa Sonjica, relating to CoAL`s Vele
Colliery in the Limpopo Province.
CoAL would like to take this opportunity to state that to date, all activities
undertaken at the Vele Colliery have been carried out in accordance with the new
order mining right ("NOMR") granted for the Vele Colliery and the Company has
not undertaken any activities for which authorisation has not been given. The
NOMR, which was executed on 19 March 2010, together with the approved
Environmental Management Programme ("EMP") in respect of the Vele Colliery as
well as the rights afforded the Company under the South African Mineral and
Petroleum Resources Development Act, Act No. 28 of 2002 permit it to start
development activities on site.
The Company is unaware of the alleged "illegal activities" referred to in the
press article and is therefore seeking an immediate meeting with the Minister to
identify and address any issues and concerns.
The execution of the NOMR and approval of the EMP was the result of an extensive
and exhaustive process spanning a period of more than 18 months, including
public and government participation (including the Departments of Water Affairs
and Environmental Affairs) and the engagement of over 12 independent experts who
contributed to a comprehensive Environmental Impact Assessment.
The Company acknowledges that on 7 April 2010, the Department of Environmental
Affairs ("DEA") refused CoAL authorisation to build an access road on one of the
CoAL owned Vele farms, Erfrust 123 MS, adjoining the Vele Colliery mining right
area and to construct above ground bulk fuel storage facilities. CoAL is
currently appealing these decisions and clarifies that the Company has not and
will not start construction of this access road on Erfrust or storage facilities
until the required approvals have been received. Although the proposed access
road does not prevent the Vele Colliery from operating it would considerably
shorten the distance from the mine site to the main road.
CoAL sought these additional authorisations in accordance with the requirements
of the South African National Environmental Management Act, Act No. 107 of 1998
("NEMA"). The requirement to approve these additional activities are listed
under NEMA, but not directly related to the authorised mining operations. The
Company has been served with two pre-compliance notices from the DEA alleging
various matters, including that the Vele Colliery has proceeded with the
construction of the access road and storage facilities. As stated above, the
Company has not undertaken any activities for which authority has not been
granted.
The Company still awaits approval of its application for an integrated water use
licence ("IWUL") for the Vele Colliery which was submitted to the Department of
Water Affairs on 10 November 2009. CoAL is liaising with the relevant
authorities on an ongoing basis to enable the granting of the IWUL, which is
required before the Company can commence any mining or processing activities at
the Vele Colliery. However the IWUL is not required for the development
activities which have been carried out to date.
The Company is currently seeking clarification from the Minister with regards to
her comments and a further announcement will be made in due course.
compliance notices from the DEA alleging various matters, including that the
Vele Colliery has proceeded with the construction of the access road and storage
facilities. As stated above, the Company has not undertaken any activities for
which authority has not been granted.
The Company still awaits approval of its application for an integrated water use
licence ("IWUL") for the Vele Colliery which was submitted to the Department of
Water Affairs on 10 November 2009. CoAL is liaising with the relevant
authorities on an ongoing basis to enable the granting of the IWUL, which is
required before the Company can commence any mining or processing activities at
the Vele Colliery. However the IWUL is not required for the development
activities which have been carried out to date.
The Company is currently seeking clarification from the Minister with regards to
her comments and a further announcement will be made in due course.
Authorised by:
SIMON J FARRELL
Executive Deputy Chairman
2 August 2010
JSE Sponsor
Macquarie First South Advisers
CoAL
Simon Farrell Tel: +61 (0) 417 985 383
Blair Sergeant Tel: +27 (0) 11 459 2840
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
Annerie Britz
About CoAL
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
Mooiplaats thermal coal mine, the Vele coking coal project and the Makhado
coking coal project.
The Mooiplaats coal mine commenced production in 2008 and is currently ramping
up to produce 2 million tonnes per annum ("Mtpa"). CoAL`s Vele and Makhado
coking coal projects are expected to start production in Q3 2010 and 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 approximately 2.5Mtpa
of saleable coal for domestic and export markets. NuCoal also owns two
beneficiation plants, one fully operational mine producing approximately 300kt
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 in Maputo,
Mozambique, increasing to 3 Mtpa 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 an additional 10 Mtpa.
Date: 02/08/2010 07:05:03 Produced by the JSE SENS Department.
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