| Wed 1 Sep 2010, 11:44 | | CZA - Coal of Africa Limited - Vele Colliery Update |
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CZA
CZA
CZA - Coal of Africa Limited - Vele Colliery Update
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")
VELE COLLIERY UPDATE
Coal of Africa Limited provides the following update with regard to the
ongoing discussions with the South African Department of Environmental Affairs
("DEA") around the Compliance Notice issued, as announced on 11 August 2010 and
the Department of Water Affairs ("DWA") regarding an Integrated Water Use
License application("IWULA") affecting the Company`s
Vele Colliery ("Vele").
DEPARTMENT OF ENVIRONMENTAL AFFAIRS
CoAL wishes to advise that it has held several constructive meetings with
various members of the DEA, including the Director General.
The Company has adhered to the Compliance Notice in full and is in the process
of submitting rectification applications in terms of section 24G of the South
African National Environmental Management Amendment Act, 1998 (ACT NO. 107 OF
1998), as amended ("NEMA") to continue with the activities, the subject of the
Compliance Notice referred to above. The Company has also applied to the
Minister for the suspension of the Compliance Notice during this process.
DEPARTMENT OF WATER AFFAIRS
The Company has also complied with a DWA directive requesting a cessation of
related specific activities pending the issue of the IWULA. As required by the
directive, an Independent Environmental Assessment Practitioner ("EAP") is being
appointed to assess the current and proposed activities in conjunction with the
IWULA process with respect to the impact on the risks to the water resource.
Significant progress has been made between the DWA and the Company in satisfying
the technical requirements as raised by the Department.
The Company remains confident that the processes between the Company, DEA and
DWA will be satisfactorily addressed. The timelines required to complete these
processes has unfortunately left the Company with no choice but to reduce the
workforce at the Vele Colliery by 596 people to date.
Production is now likely to re-commence in Q4 2010.
The Company will continue to keep the market informed of relevant progress.
Authorised by:
JOHN WALLINGTON
Chief Executive Officer
1 September 2010
JSE Sponsor
Macquarie First South Advisers (Pty) Limited
Contacts:
CoAL Tel: +27 (0) 11 575 4363
John Wallington
Blair Sergeant
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
www.coalofafrica.com
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 Makhado coking coal
project is expected to start production in 2012 and timing for Vele to reach
production is still to be confirmed. These operations are targeted to
collectively produce an initial 2 Mtpa ramping up 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: 01/09/2010 11:44:01 Produced by the JSE SENS Department.
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