| Thu 4 Aug 2011, 7:05 | | CZA - Coal of Africa Limited - Update on the re-opening of Vele Colliery |
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CZA
CZA
CZA - Coal of Africa Limited - Update on the re-opening of Vele Colliery
Coal of Africa Limited
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
JSE Share code: CZA
ASX Share code: CZA
AIM Share code: CZA
ISIN AU000000CZA6
("CoAL" or the "Company")
UPDATE ON THE RE-OPENING OF VELE COLLIERY
CoAL is pleased to advise that, following the granting of Environmental
Authorisation to its subsidiary, Limpopo Coal Company for Vele Colliery on
5 July 2011, and compliance with certain conditions, initial activities
relating to the re-opening of the colliery have started.
The inspection and completion of the coal treatment wash plant are
immediate priorities. Work in preparation for re-employing mining employees
has also commenced.
Currently, as announced on 29 July 2011, activities at the Vele Colliery
that require water use remain suspended.
The Company will advise the market of the significant developments in this
regards.
Authorised by:
JOHN WALLINGTON
Chief Executive Officer
Bryanston
04 August 2011
JSE Sponsor
Macquarie First South Advisers (Pty) Ltd
For more information contact
John Wallington Chief Executive Coal of Africa +27 11 575 7423
Officer
Wayne Koonin Finance Director Coal of Africa +27 11 575 4363
Shannon Coates Company Coal of Africa +61 893 226 776
Secretary
Chris Sim/Romil Nominated Evolution +44 20 7071 4300
Patel Adviser Securities
Jos Simson/Emily Financial PR Tavistock +44 207 920 3150
Fenton
Melanie de JSE Sponsor Macquarie First +27 11 583 2000
Nysschen/ South Advisers
Annerie Britz/
Yvette
Labuschagne
Charmane Financial PR Russell and +27 11 880 3924
Russell/James South Africa Associates +27 82 372 5816
Duncan
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 Vele Colliery (coking
coal), the Makhado Project (coking coal) and the Mooiplaats and Woestalleen
Collieries (both thermal coal).
The Mooiplaats Colliery commenced production in 2008 and is currently
ramping up to produce 2 million tonnes per annum ("Mtpa"). CoAL`s Vele
Colliery and Makhado Project are expected to start production in the first
half of 2012 and the first half of 2013 respectively. These operations are
targeted to collectively produce an initial 1Mtpa ramping up to a combined
annual output of 10Mtpa 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 Colliery. 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. The
Woestalleen Colliery also incorporates two beneficiation plants with a
total processing capacity of 350,000 run of mine feed tonnes per month.
In November 2010, CoAL agreed to acquire the Chapudi coal project and
several other coal exploration properties in the Soutpansberg coal basin in
South Africa from the previous owners, including Rio Tinto. When completed,
the acquisition of these projects will significantly extend the scale and
scope of certain of CoAL`s existing projects in the region and will more
than double the resource of the existing Makhado Project.
Date: 04/08/2011 07:05:10 Produced by the JSE SENS Department.
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