| Thu 11 Nov 2010, 17:24 | | CZA - Coal of Africa Limited - Progress update on the Mooiplaats Colliery |
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CZA
CZA
CZA - Coal of Africa Limited - Progress update on the Mooiplaats 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`)
PROGRESS UPDATE ON THE MOOIPLAATS COLLIERY
Withdrawal of the Pre-compliance Notice
Coal of Africa Limited, the coal mining and development company operating in
South Africa provides an update with regard to its Mooiplaats Colliery.
Following a meeting between representatives of CoAL and MDEDET, agreement has
been reached and as a result the Pre-Compliance Notice ("Notice") issued on 28
October 2010 to CoAL`s wholly owned subsidiary and owner of the Mooiplaats
Colliery, Langcarel Pty Ltd, has been withdrawn. As a consequence of this
agreement, we can also confirm that no Compliance Notice will be issued.
Furthermore, constructive discussions with MDEDET are on-going in relation to
certain of the issues raised in the Notice and the Company is fully committed
to complying with the legal requirements as stipulated by the National
Environmental Management Act (NEMA).
The market will be advised of any further developments.
JOHN WALLINGTON
Chief Executive Officer
11 November 2010
Johannesburg
JSE Sponsor
Macquarie First South Advisers (Pty) Limited
For more information contact:
John Wallington / Blair Sergeant
CoAL +27 (0) 11 575 4363
Simon Edwards / Chris Sim
Evolution Securities +44 (0) 20 7071 4300
Jos Simson / Leesa Peters
Conduit PR +44 (0) 20 7429 6603
Melanie de Nysschen/Annerie Britz/
Yvette Labuschangne
Macquarie First South Advisers +27 (0) 11 583 2000
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: 11/11/2010 17:24:01 Produced by the JSE SENS Department.
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