JOHANNESBURG (miningweekly.com) – South Africa’s Department of Mineral Resources (DMR) has granted junior miner Coal of Africa Limited (CoAL) a new-order mining right over its Vele coking coal project, in Limpopo province.

The Aim-, ASX- and JSE-listed CoAL owns 80% of Vele and could spend up to R3,2-billion in capital expenditure on the project.

MD Simon Farrell said that the company would immediately proceed with the development of the coking coal project upon execution of the mining licence.

The company would spend R350-million on the first phase, which would produce one-million tons a year of coking coal.

Output would be boosted to five-million tons a year in the second phase.

CoAL has also been granted a conditional new-order mining right for its Holfontein coal project, near synfuels producer Sasol’s Secunda coal production area.

The Holfontein new-order mining right was conditional on the delivery of certain documents to the DMR, CoAL said in a statement.

The coal explorer expected to execute both rights with the DMR by the end of February.

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