| Wed 19 Oct 2011, 7:05 | | CZA - Coal of Africa Limited - Vele intergrated water use licence suspension |
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CZA
CZA
CZA - Coal of Africa Limited - Vele intergrated water use licence suspension
lifted
Coal of Africa Limited
(previously "GVM Metals Limited")
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
ISIN AU000000CZA6
JSE/ASX/AIM share code: CZA
("CoAL or the "Company")
VELE INTERGRATED WATER USE LICENCE SUSPENSION LIFTED
Coal of Africa Limited is pleased to announce that the suspension of the
Integrated Water Use Licence ("IWUL") for the Vele Colliery ("Vele") in the
Limpopo Province has been lifted by South African Minister of Water and
Environmental Affairs, Ms Edna Molewa, following representation made by the
Company on 8 August 2011.
After taking into consideration all relevant facts including the appeal lodged
by the non-governmental organisations to the Water Tribunal against the decision
to grant an IWUL to CoAL under Section 41 of the South African National Water
Act 1998 (Act No. 36 of 1998) ("the Act") and a subsequent petition filed by the
Company, the Minister exercised her discretion and has removed the suspension in
terms of Section 148 (2)(b) of the Act, pending finalisation of the appeal
lodged to the Water Tribunal.
The lifting of the suspension enables Coal of Africa to commence with full
operations at Vele and to mobilise without delay, all remaining operational
activities to complete the remaining construction at the Vele mine. The process
to mobilise contractors and re-employ staff will commence immediately. The mine
will create around 500 jobs during the initial phase of operation.
CoAL Chief Executive Officer, John Wallington said; "I am delighted that lifting
of the suspension to bring Vele into production has been achieved. We are now
well placed to produce first coking coal in Q1 2012, ramping up to an initial
target of one million tonnes per annum. We look forward to providing further
updates to the market in due course."
19 October 2011
Johannesburg
JSE Sponsor
Macquarie First South Advisers (Pty) Ltd
For more information contact:
John Wallington
Chief Executive Officer
Coal of Africa
+27 11 575 7423
Wayne Koonin
Finance Director
Coal of Africa
+27 11 575 4363
Shannon Coates
Company Secretary
Coal of Africa
+61 893 226 776
Chris Sim/Romil Patel
Nominated Adviser
Evolution Securities
+44 20 7071 4300
Jos Simson/Emily Fenton
Financial PR
Tavistock
+44 207 920 3150
Melanie de Nysschen/ Annerie Britz/ Yvette Labuschagne
JSE Sponsor
Macquarie
+27 11 583 2000
www.coalofafrica.com
About CoAL:
CoAL is an AIM/ASX/JSE listed coal exploration, development and mining company
operating in South Africa. CoAL`s key projects include the Vele Colliery (coking
and thermal 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 Mtpa. The Woestalleen Colliery, acquired through the acquisition of
NuCoal Mining (Pty) Limited in January 2010, currently processes approximately
2.5Mtpa of saleable coal for domestic and export markets. The Woestalleen
Complex also incorporates three beneficiation plants with a total processing
capacity of 350,000 run of mine feed tonnes per month.
CoAL`s Vele Colliery is expected to start production in Q1 2012. During the
initial phase, the operation is targeting 2.7 Mtpa ROM production to produce
1.0Mtpa of saleable coking coal. The Makhado Project, CoAL`s flagship project in
the Soutpansberg coalfield, is well into the feasibility stage, with a
Definitive Feasibility Study nearing completion. An application for a New Order
Mining Right for the Makhado Project was submitted in January 2011.
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. Upon completion, 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: 19/10/2011 07:05:40 Produced by the JSE SENS Department.
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