| Wed 11 Aug 2010, 14:21 | | CZA - Coal of Africa Limited - Meeting with department of environmental affairs |
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CZA
CZA
CZA - Coal of Africa Limited - Meeting with department of environmental affairs
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")
MEETING WITH DEPARTMENT OF ENVIRONMENTAL AFFAIRS
Further to the announcement of 6 August 2010, Coal of Africa Limited ("CoAL" or
"the Company") confirms that a meeting took place between the Company and the
senior representatives of the Department of Environmental Affairs ("DEA") on
Tuesday 10 August 2010, during which discussion centred on the alleged "illegal
activities" that had been identified by the DEA in the form of a Compliance
Notice served in relation to the Company`s Vele Colliery.
The Company maintains that all activities are within the rights of its New Order
Mining Right, issued to CoAL by the Department of Mineral Resources on 19 March
2010. The Company is nonetheless complying with that Notice as required and
confirms it has ceased certain activities at Vele.
CoAL confirms that both parties are continuing to work together in good faith
and the Company remains confident that an outcome satisfactory to both parties
will be achieved.
CoAL will update the market on progress in due course.
Separately, the Company reiterates that it has not received its Integrated Water
Use Licence ("IWUL") as applied for in November 2009. Critically, mining and
processing of the coal cannot commence without the benefit of the IWUL. The
Company continues to work closely with the Department of Water Affairs in order
to facilitate the processing of the IWUL application.
Authorised by:
JOHN WALLINGTON
Chief Executive Officer
11 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 ZAR467m 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: 11/08/2010 14:21:01 Produced by the JSE SENS Department.
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