JOHANNESBURG (miningweekly.com) – With dual-listed Coal of Africa Limited (CoAL) expecting the mining right for its Makhado project to be granted during the first half of this year, the company’s year ahead has been bolstered, with the amended and updated environmental authorisation being approved for its Vele colliery, in Limpopo, including anticipated plant modifications.
It noted that the mining right was a critical step in unlocking the significant value of Vele, CoAL’s flagship hard coking and thermal coal asset. CoAL had also previously submitted applications to amend and renew the colliery’s integrated water-use licence (IWUL) and was confident that these would also be received during the first half of the year.
The current IWUL was valid until March 2016; however, the company delayed the start of the plant modification construction to the third quarter pending the approval of the relevant applications, which also allowed it more time to assess the outlook for coal prices.
Commenting on the company’s report for the three months ended March, CoAL CEO David Brown noted that Limpopo-based Makhado’s empowerment structure had also been formalised during the quarter, completing one of the last requirements for the granting of a mining right for the project.
“The structure results in communities residing in the vicinity of the project acquiring 20% of the project with a further 6% acquired by historically disadvantaged South Africans,” he explained.
PROJECTS
CoAL reported that its 74%-owned Mooiplaats colliery, in Ermelo, Mpumalanga, would be sold to Blackspear Capital, a subsidiary of Blackspear Holdings, through a R250-million sales and purchase agreement.
Blackspear had until April 30 to agree to terms with a financial and operational partner to fund its acquisition of Mooiplaats, which was placed on care and maintenance in the September 2013 quarter.
However, CoAL pointed out that it was keeping its options open, stating that it had started discussions with other potential purchasers during the quarter.