| Wed 3 Nov 2010, 13:42 | | CZA - Coal of Africa Limited - Response to media article regarding Mooiplaats |
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CZA
CZA
CZA - Coal of Africa Limited - Response to media article regarding Mooiplaats
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 MOOIPLAATS
CoAL the coal mining and development company operating in South Africa (ticker:
CZA) and listed on the AIM, ASX Limited and JSE Limited, notes recent press
articles published by media in South Africa on 3 November 2010 regarding the
Company`s activities at the Mooiplaats Colliery in Mpumalanga.
The Company acknowledges that it has received a notice from the Department of
Economic Development, Environment and Tourism, Mpumalanga ("Department"), noting
its intention to issue a Compliance Notice in terms of section 31L of the
National Environmental Management Act in relation to activities undertaken by
the Company on portions 1 and 9 Farm Mooiplaats 219 IT in Ermelo ("Notice").
However CoAL would like to take this opportunity to state that, contrary to the
media reports, it has not been asked to stop activities at the mine.
Pursuant to the terms of the Letter, CoAL may make an application for
rectification within 10 days of receipt of the Letter, being 11 November 2010,
following which the Department has stated that it may decide not to issue the
Company with a Compliance Notice.
A detailed response will be issued in due course.
AUTHORISED BY:
JOHN WALLINGTON
Chief Executive Officer
JSE Sponsor
Macquarie First South Advisers (Pty) Ltd
For more information contact:
John Wallington CoAl +27(0)11 575 4363
Blair Sergeant
Simon Edwards Evolution +44(0)20 7071 4300
Chris Sim Securities
Jos Simson Conduit PR +44(0)20 7429 6603
Leesa Peters
Melanie de Nysschen Macquarie First +27(0)11 583 2000
Annerie Britz South Advisers
Yvette Labuschagne
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 expected tp commence Q1 2011. 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: 03/11/2010 13:42:06 Produced by the JSE SENS Department.
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