| Thu 5 Aug 2010, 11:42 | | CZA - Coal of Africa Limited - Interdict application regarding Vele Colliery |
|
CZA
CZA
CZA - Coal of Africa Limited - Interdict application 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")
INTERDICT APPLICATION REGARDING VELE COLLIERY
Coal of Africa Limited ("CoAL" or "the Company") notes that Court papers were
this week served in a South African High Court interdict application on its
wholly owned subsidiary, Limpopo Coal Company (Pty) Ltd ("Limpopo Coal"), the
company that owns the Vele Colliery near Musina in the Limpopo Province
("Vele Project").
The applicants that have served the documentation comprise a group of
predominantly environmental and conservational non-governmental organisations
("Applicants").
The Appeals
As widely reported in the media, the South African Department of Mineral
Resources ("DMR") has received a number of appeals against the grant of the
New Order Mining Right ("NOMR"), as well as the approval of the Environmental
Management Plan ("EMP") for CoAL`s Vele Colliery.
CoAL has since responded to these appeals and the appellants now have 21 days
to comment (subject to any application to extend time) on CoAL`s response,
following which the Minister of Mineral Resources (for the NOMR appeals) and
the Director-General (for the EMP appeal) have 30 days in which to make a
decision.
As the Company has previously advised, 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 Directors believe that most of the issues raised in the appeals have
already been addressed during the Environmental Impact Assessment phase,
within the Environmental Management Plan, or are simply conjecture unrelated
to the Vele mine, and these comprehensive documents do not have the
deficiencies claimed.
As such, the Company strongly believes the appeals have no basis or legal
merit whatsoever and will be defending them vigorously.
CoAL will provide an update on progress in due course.
The Interdict
The Applicants seek an order that Limpopo Coal stop mining pending the
finalisation of the above mentioned appeals and any High Court review which
the Applicants may bring in respect of the NOMR for the Vele Project. CoAL
would like to clarify that the formal execution of the NOMR included the
approval of the Environmental Management Plan submitted as part of the NOMR
application. The Applicants also seek an order that Limpopo Coal stop earth
moving activity and plant construction until a water licence is granted and
until deproclamation of "nature reserve" areas covered by the mining right,
has been processed.
The interdict application is brought on the ordinary motion roll, which is a
non urgent interdict.
Limpopo Coal will be also be opposing the interdict application
Yours sincerely
SIMON J FARRELL
Executive Deputy Chairman
5 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: 05/08/2010 11:42:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
