JOHANNESBURG (miningweekly.com) – ASX-, JSE- and Aim-listed coal producer Coal of Africa Limited (CoAL) has completed the acquisition of a 6% interest in Limpopo Coal, which owned the Vele coking coal project, taking its stake to 80%.

The coal-miner on Friday issued more than 1,9-million of its shares to Shangoni Bezwe Management Services, in order to acquire the 6% interest in the coal company and subsequently in the Vele project.

This followed an announcement in July that CoAL would acquire a 100% stake in the project, by acquiring a 20% stake from Tranter Holdings and the remaining 6% from Shangoni Bezwe.

It had already owned 74% of Limpopo Coal.

The 656-million ton Vele coking coal project, near Musina, in Limpopo province, was expected to start production in the first half of next year.

The project would be developed in two phases, with the first comprising the establishment of a modular coal treatment plant that could deliver about one-million saleable tons of coking coal a year.

The output would be boosted to five-million tons a year during the second phase.

CoAL had already started producing thermal coal at its Mooiplaats project, which had a resource of 113-million tons, while production at its one-billion ton Makhado coking coal project was expected to start by the fourth quarter of 2011.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.