JOHANNESBURG (miningweekly.com) – Coal development company Coal of Africa Limited (CoAL) has secured a rail allocation with Transnet Freight Rail (TFR) for one-million tons a year of coking coal to the Matola dry-bulk terminal, in Maputo, in Mozambique.
The company said in a statement to shareholders on Wednesday that the allocation matched its port allocation of one-million tons a year for the export of coking coal from its Vele and Makhado projects through the Matola terminal, which it had secured in an earlier agreement with Terminal De Carvao Da Matola Limitada.
Although neither of the two projects were currently in production, CoAL had already railed third-party coal to ensure the viability of the rail and port allocation.
“The initial rail allocation secured on the Maputo corridor, together with the increased capacity at Matola, represents further significant milestones for the company and overcomes a huge logistical challenge. Furthermore, it potentially adds substantial value to the coking coal projects of Vele and Makhado now that the company has a clear and tested route to the export markets,” stated CoAL MD Simon Farrell.
Further, CoAL announced that a two-million tons expansion at the Matola terminal would now go ahead.
CoALpreviously had secured the right to earn up to 100% of any increased capacity at the terminal. It also would lend the required funds for the expansion.
The company would from August 2010, when the expansion was completed, have a three-million tons a year port allocation at Matola.
Discussions with TFR to secure an additional two-million tons a year rail capacity were now under way.
Farrell added that a feasibility study for the further expansion of the Matola terminal by another ten-million tons a year in capacity was being undertaken.
CoAL is listed on the Aim, ASX and JSE.