JOHANNESBURG (miningweekly.com) – ASX-, JSE- and Aim-listed coal producer Coal of Africa Limited (CoAL) has agreed to buy the remaining 26% stake in the Vele coking coal project, in South Africa’s Limpopo province, the company announced on Tuesday.
CoAL already holds a 74% stake in the Limpopo Coal Company, which owns the project, and has now executed sale of shares and claims agreements with Tranter Holdings to secure a 20% interest, and with Shangoni Bezwe Management Services to secure the remaining 6%.
CoAL had issued about 5,6-million fully paid ordinary shares for the 20% stake, and a further 1,9-million fully paid ordinary shares for the 6% interest, the company said in a statement.
Both transactions were subject to certain conditions, including Limpopo Coal being granted a new order mining right in respect of the farms comprising the Vele coal project, by December 31.
CoAL said on Monday, in a projects update, that it was ready to “immediately” launch the first phase of its Vele project, upon the granting of a new order mining licence from the South African government.
The first phase would initially comprise the establishment of a modular coal treatment plant, which would have the ability to deliver about one-million saleable tons of coking coal a year, expected to be delivered to steel major ArcelorMittal South Africa for use at it steelworks in Vanderbijlpark. The capacity of the treatment plant could be doubled, should the steel company seek to increase its takeoff from Vele.
Phase two would deliver the planned full capacity of five-million tons of coking coal a year.