| Wed 13 Jun 2012, 9:04 | | CZA - Coal of Africa Limited - Significant increase in coal resources led by |
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CZA
CZA
CZA - Coal of Africa Limited - Significant increase in coal resources led by
acquisition of Soutpansberg assets
Coal of Africa Limited
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
ISIN AU000000CZA6
JSE/ASX/AIM share code: CZA
("CoAL or the "Company" or the "Group")
SIGNIFICANT INCREASE IN COAL RESOURCES LED BY ACQUISITION OF SOUTPANSBERG
ASSETS
Estimated gross tonnes in situ increase by 429% to 8.0 billion tonnes from
1.5 billion tonnes in the Greater Soutpansberg area.
Coal of Africa Limited ("CoAL" or "the Company"), the coal exploration,
development and mining company operating in South Africa, is pleased to
announce another strategic milestone in its strategy to grow into a
significant coking coal producer in the region. The Company today provided
an update to its resource and reserve estimates for the prospecting areas
(tenements) in its Greater Soutpansberg project area (the "Greater
Soutpansberg"), located in the Limpopo Province of South Africa. The Greater
Soutpansberg is a consolidation of nine potential coking and thermal coal
assets in the Soutpansberg coalfield, several of which were held under
prospecting rights held by the companies whose shares were acquired from Rio
Tinto Minerals Development Ltd ("Rio Tinto") and Kwezi Mining (Pty) Ltd
("Kwezi"), in the transaction that closed on 11 May 2012 (the
"Acquisition"). These have been grouped into three proximate regions, namely
Mopane, Makhado and Chapudi.
The updated resource and reserve estimates follow the conclusion of the
Acquisition in terms of which the shares in companies previously held by Rio
Tinto and Kwezi were acquired and the estimates include the coal resources
associated with the New Order Prospecting Rights ("NOPRs") held by those
companies as well as other NOPRs over properties in the Greater Soutpansberg
already held by CoAL or its subsidiaries.
Highlights
The Technical Statement indicates an increase in estimated coal resources
for the Greater Soutpansberg of more than 1.3 billion mineable tonnes in
situ ("MTIS") across the measured, indicated and inferred resource
categories, principally due to the additional assets acquired. Additional
exploration drilling and delineation of the resources is underway with
further increases in the estimated coal resources anticipated upon
completion.
Additional highlights of the updated resource estimates for the Greater
Soutpansberg include the following:
- Gross tonnes in situ ("GTIS") increased by 429% to 7.957 billion
tonnes from 1.505 billion tonnes;
- Total tonnes in situ ("TTIS") increased by 404% to 6.443 billion
tonnes from 1.279 billion tonnes;
- Mineable tonnes in situ ("MTIS") increased by 209% to 2.004
billion tonnes from 0.648 billion tonnes;
- Total licenced area of 99,719 hectares.
- Acquisition cost of US$0.055 per MTIS tonne
Following the Acquisition, the total strike drilled to the extent sufficient
to enable declaration of resources under the JORC Code, increased by 106%
from 33km to 68km. A further 66km of strike remains to be drilled,
representing a substantial opportunity for further increases in the overall
resource measured in terms of GTIS, TTIS and MTIS.
Coal of Africa chief executive, John Wallington said today, "The additional
prospecting rights represent an important development in the evolution of
Coal of Africa and its partner Rothe Investments, by consolidating the
potential coking and thermal coal assets in the Soutpansberg coalfield.
Following the conclusion of the Acquisition from Rio Tinto and Kwezi Mining
in early May 2012, we are pleased to report a significant increase in the
consolidated coking and thermal resources in our Greater Soutpansberg assets
taking Coal of Africa`s estimated gross tonnes in situ in this coalfield
from 1.5 billion tonnes to approximately 8 billion tonnes.
Having completed the Acquisition, we have started the exploration programmes
and related technical work required to evaluate the potential of these
assets in the Greater Soutpansberg area. We will continue to provide
progress updates to the markets as we reach our milestones.
With this platform in place, the Company is well positioned to achieve its
goal of creating a world class coking coal business producing in excess of
10 million tonnes per annum of saleable coking coal over the next ten years.
The further upside potential of export grade thermal coal and middlings from
our various assets remains attractive. On a broader basis, we continue to
focus on our near term objectives of ramping up Vele to full production, and
finalising the various work streams and Definitive Feasibility Study on the
Makhado Project."
Technical Statement
The updated resource estimates are presented in detail in the "Independent
Technical Statement for Greater Soutpansberg Projects for Coal of Africa
Limited, 31st May 2012" ("Technical Statement") prepared by Venmyn Rand
(Pty) Ltd ("Venmyn"), which is available on the Coal of Africa website,
www.coalofafrica.com.
The information contained in this announcement is presented on a summarised
basis and the full details are set out in the detailed Technical Statement.
Webcast
Management will provide further insight on the Technical Statement and
resource update via a webcast presentation at 16h00(CAT)/15h00(BST) on 13
June 2012. To register for attendance please follow the instructions below:
The presentation at 16:00 (CAT) will be simultaneously webcast at the
following address:
http://themediaframe.eu/links/coalofafrica120613.html
Teleconference
South Africa +27 11 535 3600
UK (Toll-free) +44 800 917 7042
South Africa - JHB Alternate +27 10 201 6616
South Africa - Cape Town +27 21 819 0900
South Africa - Durban +27 31 812 7600
South Africa (Toll-Free) +27 800 200 648
Australia (Toll-Free) +1 800 350 100
South Africa (Toll-Free) +27 800 200 648
Other Countries (Intl Toll) +27 11 535 3600
Other Countries (Alternate) +27 10 201 6616
Playback
A playback of the teleconference will be available for 48 hours afterwards
on the following telephone numbers:
South Africa and other:
Dial in no: +27 11 305 2030 Code: 20980#
Other Countries (Intl Toll):
Dial in no: +27 11 305 2030 Code: 20980#
Australia (Toll-Free):
Dial in no: +1 800 091 250 Code: 20980#
UK (Toll-Free):
Dial in no: +44 808 234 6771 Code: 20980#
Following the webcast, the presentation will be available on the Coal of
Africa website, www.coalofafrica.com.
JORC Code
All coal resources are defined in accordance with the Australian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves
prepared by the Joint Ore Reserves Committee of the Australasian Institute
of Mining and Metallurgy, the Australasian Institute of Geoscientists and
Minerals Council of Australia.
The Greater Soutpansberg
Following the Acquisition, CoAL`s Greater Soutpansberg comprising nine areas
has been re-organized into three regions, namely:
- the Chapudi Region, comprising the Chapudi, Chapudi West and
Wildebeesthoek areas;
- the Makhado Region, comprising the Makhado Project and the Telema
& Gray combined area (formerly referred to the Makhado Extension),
Mount Stuart and Generaal areas; and
- the Mopane Region, comprising the Voorburg and Jutland areas.
These assets are held under various NOPRs by CoAL or its subsidiaries and
the shares or rights, as applicable, were obtained pursuant to Ministerial
consent in terms of Section 11 of the Mineral and Petroleum Resources
Development Act.
Table 1: Summary of CoAL`s resources and reserves
Project Coalfield JORC compliant Resources Strike Strike JORC
Area (Measured, indicated and length length compliant
inferred)(1) drille to be Reserves
d to drilled (Proven
date (km) and
(km) (3) probable)
(2) (4)
Gross Total Mineable Mineable
tonnes tonnes tonnes in tonnes in
in in situ situ situ
situ (TTIS) (MTIS) (MTIS)
(GTIS) Mt Mt Mt
Mt
GREATER SOUTPANSBERG(4)
CHAPUDI REGION
- Chapudi Soutpans- 6,399. 5,119.2 1,318.42 33.08 -
berg 02 2
- Chapudi Soutpans- - - - - -
West(7) berg
- Soutpans- - - - - 17.50
Wildebees berg
thoek7
MAKHADO REGION
- Soutpansb - - - - 15.00
Generaal( erg
7)
- Makhado Soutpansb 795.61 691.69 344.37 16.51 -
erg
- Mount Soutpansb 407.16 325.73 55.46 6.31 4.25
Stuart erg
- Telema Soutpansb 84.13 73.00 66.79 2.71 -
& Gray(5) erg
MOPANE REGION
- Soutpans- - - - - 20.90
Jutland(7 berg
)
- Soutpans- 270.71 233.76 219.36 9.32 8.48
Voorburg berg
Total 7,956. 6,443.4 2,004.40 67.93 66.13
63 0
OTHER ASSETS(6)
Vele Limpopo 803.82 680.20 369.63 N\A N\A 332.71
Mooiplaat Ermelo 92.32 85.62 50.76 N\A N\A 31.59
s
Vuna Witbank 6.82 6.48 6.16 N\A N\A 6.16
Total 902.96 772.30 426.55 370.46
1. Refer to the `Independent Competent Person`s Report on the Principal
Coal Assets of Coal of Africa Limited` dated 24 October 2011 and the
`Independent Technical Statement for Greater Soutpansberg Projects for
Coal of Africa Limited, 31st May 2012` for a breakdown of these coal
resources into measured, indicated and inferred
2. Strike length drilled to the extent sufficient to enable declaration of
resources under the JORC Code
3. Strike length to be drilled to the extent sufficient to enable
declaration of resources under the JORC Code
4. Resources and reserves information extracted from the `Independent
Competent Person`s Report on the Principal Coal Assets of Coal of
Africa Limited` dated 24 October 2011 by Venmyn
5. Previously referred to as Makhado Extension
6 Refer to the `Independent Competent Person`s Report on the Principal
Coal Assets of Coal of Africa Limited` dated 24 October 2011 for a
breakdown of these coal resources into measured, indicated and inferred
and reserves into proven and probable
7 Project areas where drilling is either in progress or has not yet been
completed and resources to be defined thereafter
Due to the current state of exploration and the limited information
available, no resources as per the JORC code have yet been declared for the
Chapudi West, Wildebeesthoek, Generaal and Jutland areas. However the
presence of potentially significant coal resources are known.
Table 2: Summary of current coal resources of the Greater Soutpansberg Area
as at 31 May 2012(1)
Region Project/A Resourc Gross Total Mineable Coal
rea e Tonnes in Tonnes Tonnes Attribu-
Categor Situ in Situ in Situ table
y (GTIS) (TTIS) (MTIS) 100%
(t) (t) (t)
Mopane Voorburg Measure 109,435,158 98,491,642 94,915,200 100%
d
Makhado Makhado 402,780,570 362,502,682 264,982,700 100%
Telema & 42,244,854 38,020,369 36,240,800 100%
Gray
TOTAL/WT. AVE MEASURED 554,460,582 499,014,693 396,138,700 100%
Mopane Voorburg Indicat 125,033,852 106,278,774 100,500,000 100%
ed
Makhado Makhado 298,594,886 253,805,653 76,390,000 100%
Telema & 29,581,152 25,143,979 23,225,000 100%
Gray
TOTAL/WT. AVE INDICATED 453,209,890 385,228,406 200,115,000 100%
Mopane Voorburg Inferre 36,238,997 28,991,198 23,940,000 100%
d
Makhado Makhado 94,232,132 75,385,706 2,998,000 100%
Telema & 12,301,228 9,840,982 7,320,000 100%
Gray
Mount 407,162,828 325,730,262 55,460,000 100%
Stuart
Chapudi Chapudi 6,399,023,4 5,119,218,7 1,318,420,0 100%
36 49 00
TOTAL/WT. AVE INFERRED 6,948,958,6 5,559,166,8 1,408,138,0 100%
21 97 00
GRAND TOTAL RESOURCES 7,956,629,0 6,443,409,9 2,004,391,7 100%
93 96 00
1 Refer to the `Independent Technical Statement for Greater Soutpansberg
Projects for Coal of Africa Limited, 31st May 2012` for a detailed
report on these resources
Table 3: Summary of coal reserves of other CoAL assets as at 24 October
2011(1)
Region Projec Reserve Mineable ROM Primary Saleable 2%
t/ Categor Tonnes in Tonnage Saleable Secondar
Area y Situ Product y
(MTIS) (t) (t) Product
(t) (t)
Limpopo Vele Proven - - - - 100
%
Ermelo Mooipl 31,590,20 18,656,80 9,433,300 779,900 100
aats 0 0 %
Mpumalan Vuna 6,155,700 6,547,400 3,381,600 2,101,20 100
ga 0 %
TOTAL/WT. AVE PROVEN 37,745,90 25,204,20 12,814,90 2,881,10 100
0 0 0 0 %
Limpopo Vele Probabl 332,709,0 299,391,0 92,387,00 - 100
e 00 00 0 %
Ermelo Mooipl - - - - 100
aats %
Mpumalan Vuna - - - - 100
ga %
TOTAL/WT. AVE PROBABLE 332,709,0 299,391,0 92,387,00 - 100
00 00 0 %
GRAND TOTAL RESERVES 370,454,9 324,595,2 105,201,9 2,881,10 100
00 00 00 0 %
1 Refer to the `Independent Competent Person`s Report on the Principal
Coal Assets of Coal of Africa Limited` dated 24 October 2011 for a
detailed report on these resources as contained in the Registration
Document filed on the same date and which is available on the Coal of
Africa website on www.coalofafrica.com
2 Percentage attributable to CoAL
Table 4: Summary of coal resources (inclusive of reserves) of other CoAL
assets as at 24 October 2011(1)
Region Project/ Resource Gross Total Mineable Coal
Area Category Tonnes in Tonnes in Tonnes in Attribu
Situ Situ Situ table
(GTIS) (TTIS) (MTIS) 100%
(t) (t) (t)
Limpopo Vele Measured 158,035,0 142,231,5 94,241,40 100%
63 57 0
Ermelo Mooiplaa 73,995,85 70,296,06 48,330,10 100%
ts 6 3 0
Mpumalan Vuna 6,820,858 6,479,815 6,155,700 100%
ga
TOTAL/WT. AVE MEASURED 238,851,7 219,007,4 148,727,2 100%
77 35 00
Limpopo Vele Indicate 426,854,1 362,826,0 200,298,0 100%
d 88 60 00
Ermelo Mooiplaa 13,234,65 11,249,45 2,260,000 100%
ts 5 7
Mpumalan Vuna - - - 100%
ga
TOTAL/WT. AVE INDICATED 440,088,8 374,075,5 202,558,0 100%
43 17 00
Limpopo Vele Inferred 218,931,5 175,145,2 75,090,00 100%
75 60 0
Ermelo Mooiplaa 5,092,178 4,073,742 170,000 100%
ts
Mpumalan Vuna - - - 100%
ga
TOTAL/WT. AVE INFERRED 224,023,7 179,219,0 75,260,00 100%
53 02 0
GRAND TOTAL RESOURCES 902,964,3 772,301,9 426,545,2 100%
73 54 00
1 Refer to the `Independent Competent Person`s Report on the Principal
Coal Assets of Coal of Africa Limited` dated 24 October 2011 for a detailed
report on these resources as contained in the Registration Document filed on
the same date and which is available on the Coal of Africa website on
www.coalofafrica.com
Resources by region
Chapudi Region
The Chapudi Region represents the most significant portion of the overall
resource in the Greater Soutpansberg, consisting of the Chapudi, Chapudi
West and Wildebeesthoek areas. The total prospecting rights area covers
40,792 hectares.
A total of 33km of strike length was drilled in the Chapudi area by Rio
Tinto and based on the updated resource calculation prepared for the
Company, the total resource for this area has been calculated as 1.318
billion tonnes (MTIS), 5.119 billion tonnes (TTIS) and 6.399 billion tonnes
(GTIS). The resource of the Chapudi area, expressed as a percentage of total
resource in the Greater Soutpansberg, is 54% for MTIS, 71% for TTIS and 72%
for GTIS.
It should be noted that CoAL`s estimate for the Chapudi area of 6.399
billion tonnes (GTIS) is significantly higher than the estimate for this
area previously prepared by Rio Tinto (1.039 billion tonnes) on account of
the following factors:
- CoAL`s estimate includes certain farms over which NOPRs were
already held by CoAL or its subsidiaries prior to completion of
the Acquisition, which were not considered in the Rio Tinto
estimate;
- CoAL`s estimate quotes GTIS to a depth determined by the limit of
the relevant NOPRs, whereas Rio Tinto`s estimate assumed a maximum
depth of 200 metres; and
- the Rio Tinto estimate was prepared prior to completion of the Pre-
Feasibility Study drilling undertaken in 2009 and therefore does
not reflect the results of that drilling program.
The Rio Tinto GTIS estimate for the Chapudi Project is more directly
comparable to the current CoAL MTIS estimate of 1.318 billion tonnes, which
was also prepared to a maximum depth of 200 metres. The difference between
the two is largely attributable to the additional farms over which NOPRs
were already held by CoAL or its subsidiaries which are included in CoAL`s
estimate.
CoAL continues with further technical work to refine the delineation of
resource, including detailed analysis based on mining selective coal
horizons as opposed to the bulk mining method intended by Rio Tinto. This
will provide further clarity on the extent of the coking coal, high grade
thermal and middling products available in the Chapudi area.
The Chapudi area lies to the west and along strike of the Makhado Project in
the Makhado Valley of the Soutpansberg coalfield. Based on detailed
technical work undertaken on the Makhado Project to date, this provides an
important reference point to understand the continuity of the coal seams
across the Chapudi area when re-logging boreholes based on delineating the
selective coal horizons.
Makhado Region
The Makhado Region consists of the Makhado Project, which represents the
most advanced exploration project in the Greater Soutpansberg, along with
the Telema and Gray combined area (previously referred to as Makhado
Extension) and Mount Stuart area to the east, and the Generaal area to the
north. The total Makhado Region covers 32,922 hectares, of which the Makhado
Project is 8,190 hectares.
The Definitive Feasibility Study for the Makhado Project is nearing
completion, having recently received a favourable review by the CoAL Board
of Directors during the quarter ended 31 March 2012. Detailed testing of
product extracted from a bulk sample has been completed and confirmed that
the 10% ash coking coal product performs well relative to other hard coking
coals measured in terms of the Coke Strength Reaction, Coke Reactivity Index
and Reflectance. Independent tests commissioned to confirm these results
further suggest that the coal will be classified as a hard coking coal.
Additional test work continues to determine the extent of an export grade
thermal and middlings product.
The Generaal area is the largest within the Makhado Region, covering 13,470
hectares and a 20km, east-west striking, up-faulted block within the
northern part of the Waterpoort Basin, immediately north of the Makhado
Project. This provides the greatest synergy with the Makhado Project,
further analysis of this potential is under review following completion of
the Acquisition. Iscor drilled 48 holes and Rio Tinto a further 5 boreholes
over this area. The Iscor borehole database was acquired by CoAL and the
resource has good potential for both coking coal, and a middlings thermal
product.
Mopane Region
Following the Acquisition, the Mopane Region was further consolidated with
various additional NOPRs within the Voorburg and Jutland areas that had not
previously been held by CoAL, and have now been acquired, creating
contiguous properties in this area over which the Company has NOPRs. The
total consolidated area covers 26,005 hectares of which 11,504 hectares lie
to the north on Voorburg and 14,501 hectares lie to the south on Jutland.
The Voorburg area lies approximately 10km north of the main Soutpansberg
Coalfield.
A metallurgical coal with a potential domestic and export thermal product
has been identified in the Mopane Region. As a result of the Acquisition,
the total strike drilled on Voorburg and Jutland increased from 7km to 9km
and the remaining strike to be drilled tripled from approximately 7km to
21km, with the drilling program currently underway in this area.
Exploration drilling carried out by Iscor on the Voorburg area consisted of
39 diamond core boreholes, a further 4 by Rio Tinto and more recently 15
large diameter holes by CoAL. Previous drilling results on the Jutland area
by Iscor in the 1970`s do not conform to JORC standards and accordingly have
not been included in the resource estimates. Following the Acquisition, the
estimated resources for Voorburg increased marginally from previous
estimates by 38Mt (MTIS), 45Mt (TTIS) and 53Mt (GTIS) to 219Mt (MTIS), 234
Mt (TTIS) and 271 Mt (MTIS) respectively. Further increases in the resources
are anticipated with the additional exploration work planned for completion
during the remainder of 2012.
In the late 1960`s and early 1970`s, exploration drilling on the Jutland
area was carried out by Trans Natal Coal Mining Corporation with a total of
59 boreholes completed. Iscor continued with this work in the 1970`s and
1980`s and more recently Rio drilled 3 vertical reverse circulation holes on
these properties. The Jutland area is likely to yield a coking coal product,
with further testing required to determine the extent of a thermal coal
product. Overall, the area has the potential to contribute significant
additional coking coal production from the region. No resource has been
declared and CoAL has commenced with the exploration program in this area.
Competent Person
The information in this announcement that relates to mineral resources or
ore reserves has been compiled by Ms C Telfer (B.Sc. Hons. (Geol.), (DMS)
Dip Bus Man Pr. Sci. Nat., FGSSA, MAusIMM, M.Inst.D) and Mr G Njowa (M.Sc.
(Min. Eng), MRM, B.Sc.Hons. (Min. Eng), Grad CIS, MSAIMM, Pr Eng, MIAS),
both full time employees of Venmyn Rand (Pty) Ltd, who both have relevant
and appropriate experience and independence to appraise the coal assets.
Both Ms C Telfer and Mr G Njowa are considered "Competent Persons", and each
have more than five years relevant experience in the assessment and
evaluation of the types of coal exploration and mining properties presented
in this announcement. Both Ms C Telfer and Mr G Njowa consent to the
inclusion of the resource information in these Presentation Materials in the
form and context in which it appears.
Glossary
- Definitive Feasibility Study - A study of the economic viability
of the mining and production of base or precious metals or other
minerals in such form and containing such detail as is customarily
required by a bank or other financial institution engaged in
mining project finance to enable it to determine whether to
finance the development of a commercial mining operation.
- Export grade thermal coal - Coal that is used primarily for its
heating value, typically measured at 6,000kcal. Thermal coal tends
not to have the carbonization properties possessed by
metallurgical coal.
- Gross tonnes in situ (GTIS) - At minimum thickness cut-off of
0.5m.
- Hard coking coal - A type of coking coal which enables the coke to
be more efficient in/for steel making when it converts iron ore to
raw steel.
- JORC Code - The 2004 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves prepared by the Joint Ore Reserves Committee of the
Australasian Institute of Mining and Metallurgy, the Australasian
Institute of Geoscientists and Minerals Council of Australia.
- km - Kilometre.
- Mineral Resource - An estimated tonnage and grade of
mineralisation in the ground reported in-line with the JORC Code.
- Middlings product - A by-product of export grade thermal coal of
lower heating value typically used for power generation.
- Mineable tonnes in situ (MTIS) - At maximum opencast mining depth
of 200m. No underground mining considered. Excludes all coal with
volatiles <20%
- Resource - An estimated tonnage and grade of mineralisation in the
ground.
- Reserve - The economically mineable part of a mineral resource
- Total tonnes in situ (TTIS) - At minimum thickness cut-off of 0.5m
For more information contact:
John Wallington
Chief Executive Officer
Coal of Africa
+27 11 575 4363
Wayne Koonin
Financial Director
Coal of Africa
+27 11 575 4363
Shannon Coates
Company Secretary
Coal of Africa
+61 89 322 6776
Sakhile Ndlovu
Investor Relations
Coal of Africa
+27 11 575 6858
Ruben Govender
JSE Sponsor
J.P. Morgan Equities Limited
+27 11 507 0430
Charmane Russell/Jane Kamau
Financial PR (South Africa)
Russell & Associates
+27 11 880 3924 / +27 82 372 5816
Jos Simson/Emily Fenton
Financial PR (United Kingdom)
Tavistock
+44 20 7920 3150
Chris Sim/Jeremy Ellis/Neil Elliot
Nominated Adviser
Evolution Securities
+44 20 7071 4300
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 Greater Soutpansberg Project,
including CoAL`s 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 (ROM) feed
tonnes per month.
CoAL`s Vele Colliery commenced 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 having been reviewed by the CoAL Board in March
2012. An application for a New Order Mining Right for the Makhado Project
was submitted in January 2011.
In May 2012, CoAL acquired the Chapudi coal project and several other coal
exploration properties in the Soutpansberg coal basin in South Africa,
subsequently renamed the Greater Soutspansberg Project, from the previous
owners, including Rio Tinto. The Greater Soutpansberg Project is a
consolidation of nine potential coking and thermal coal assets grouped into
three proximate regions, namely Mopane, Makhado and Chapudi. The acquisition
of these assets strengthens Coal of Africa`s position as one of the most
substantial holders of prospecting and mining rights for coking coal in
South Africa`s Soutpansberg coalfield.
13 June 2012
Date: 13/06/2012 09:04:01 Produced by the JSE SENS Department.
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