JOHANNESBURG (miningweekly.com) - The $100-million investment in ASX-, Aim- and JSE-listed Coal of Africa Limited (CoAL) by Hong Kong-based Haohua Energy International (HEI), a wholly owned subsidiary of Beijing Haohua Energy (BHE) was approved by shareholders on Friday.
Subsequently, CoAL would proceed with the issue of the conditional placement shares of $80-million at 25p a share to HEI, as agreed.
CoAL aimed to use the funds to upgrade the processing plant and complete the production build-up at the Vele colliery, in Limpopo, enabling the project to simultaneously produce semisoft coking coal and thermal middlings coal for the international and domestic markets.
“This investment by HEI will form the basis for a strategic partnership between CoAL and BHE that will facilitate the development of CoAL’s assets. This is a significant step in stabilising the financial structure of the company and enables management to unlock the value in the coking assets in the Limpopo province of South Africa.
“Further, the exchange of financial, technical and operational expertise that can be realised from this partnership is significant and company-transforming,” CoAL chairperson David Brown said.