Wrap Text
CZA - Coal of Africa Limited - New order mining right lodged for Makhado project
Coal of Africa Limited
(previously, "GVM Metals Limited")
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
JSE Share code: CZA
ASX Share code: CZA
ISIN AU000000CZA6
("CoAL" or the "Company")
NEW ORDER MINING RIGHT LODGED FOR MAKHADO PROJECT
Highlights:
- New Order Mining Right Application lodged for Makhado Coking Coal Project
- New Order Prospecting Rights Executed to Effect the Rio Tinto Farm Swap
- Makhado Project Bulk Sample removal process on track
- Makhado Definitive Feasibility Study on track for completion Q1 2011
NOMR Application Lodged
Coal of Africa Limited ("CoAL" or "the Company") is pleased to announce that it
has lodged a New Order Mining Right ("NOMR") application with the South African
Department of Mineral Resources ("DMR") in the Limpopo Province of South Africa
for its Makhado Coking Coal Project ("Makhado Project").
In preparing the NOMR application, the Company completed baseline social and
environmental studies, which were conducted by a group of specialist independent
consultants. Consultation with interested and affected parties ("IAP`s") is
underway, which includes the formation of the Makhado Project Community
Engagement Forum to facilitate consultation with the communities and land
claimants affected by the Makhado Project. Once the NOMR application is accepted
by the DMR, extensive economic, social and environmental impact studies will be
prepared as part of the process in formulating an extensive Environmental
Management Programme ("EMP"). The Mineral and Petroleum Resources Development
Act ("MPRDA") and National Environmental Management Act ("NEMA") processes will
be run in parallel during the next phase to ensure all relevant approvals are
obtained.
John Wallington, CoAL`s Chief Executive Officer, today commented: "This
application is a significant step in the process of meeting all regulatory
requirements to enable the establishment of the coking coal mine at Makhado."
NOPR`s Executed to Effect the Rio Tinto Farm
CoAL is also pleased to announce that on 20 January 2011, the various New Order
Prospecting Rights resulting from the previously agreed Farm Swap with Rio Tinto
were executed, representing the final administrative process to complete the
transaction.
Makhado Project Bulk Sample Update
As previously announced, the Company received approval from the DMR for the
extraction of a bulk sample from the Makhado Project. The sampling involves
the extraction of 19,100 tonnes of run of mine ("ROM") coal, to be transported
to Tshikondeni Colliery, owned by Exxaro Resources Limited, for beneficiation to
produce approximately 4,400 tonnes of coking coal. The intention is to have the
full sample extracted and transported to Tshikondeni for processing by mid March
2011.
The bulk sample pit in the foreground & stockpiles in the background
(For the release with pictures and schematics, please refer to the Company`s
website: www.coalofafrica.com)
The sample will be tested by ArcelorMittal SA at Vanderbijlpark, which will
facilitate the finalisation of specific terms and conditions relating to the
proposed off-take agreement between CoAL and ArcelorMittal SA.
Makhado Definitive Feasibility Study ("DFS")
CoAL has largely completed the DFS for the Makhado Project and is currently
undergoing a "peer review" process which is expected to be completed in the
first quarter of 2011. The intention thereafter is to commence with the
detailed design phase of the project, pending approval of the above mentioned
NOMR.
Authorised by:
JOHN WALLINGTON
Chief Executive Officer
Bryanston
24 January 2011
JSE Sponsor
Macquarie First South Advisers (Pty) Ltd
For more information contact
Simon Farrell Executive Deputy Coal of Africa +61 417 985 383
Chairman
John Wallington Chief Executive Coal of Africa +27 11 575 7423
Officer
Blair Sergeant Finance Director Coal of Africa +27 11 575 6797
Ryan Rockwood Associate Azure Capital +61 447 760 058
Director
Rob Nominated Evolution +44 20 7071 4300
Collins/Romil Adviser Securities
Patel/Chris Sim
Melanie de JSE Sponsor Macquarie First +27 11 583 2000
Nysschen/Annerie South Advisers
Britz/Yvette
Labuschagne
Jos Simson/Emily Financial PR Tavistock +44 207 920 3150
Fenton
www.coalofafrica.com
About CoAL:
CoAL is an AIM/ASX/JSE listed coal mining and development company operating in
South Africa. CoAL`s key projects include the Woestalleen Colliery, the
Mooiplaats thermal coal mine, the Vele coking coal project and the Makhado
coking coal project.
The Mooiplaats coal mine commenced production in 2008 and is currently ramping
up to produce 2 million tonnes per annum ("Mtpa"). CoAL`s Makhado coking coal
project is expected to start production in 2013 and timing for Vele to reach
production is still to be confirmed. These operations are targeted to
collectively produce an initial 2Mtpa ramping up to a combined annual output of
10Mtpa of coking coal.
In 2010, CoAL completed the ZAR467m acquisition of NuCoal Mining (Pty) Limited
("NuCoal"), a thermal coal producer with assets in South Africa in close
proximity to CoAL`s Mooiplaats mine. NuCoal owns the Woestalleen Colliery, which
has a number of off-take contracts in place and processes approximately 2.5Mtpa
of saleable coal for domestic and export markets. NuCoal also owns two
beneficiation plants, one fully operational mine producing approximately 300kt
per month of ROM coal and has recently commenced production at a second mine.
Resource Estimation:
The information in this report that relates to exploration results, mineral
resources or ore reserves in respect of the Makhado coking coal project is based
on information compiled by Mark Craig Stewardson, who is registered as a
Professional Natural Scientist (Pr Sci Nat, Reg. No. 400119/93) with the South
African Council for Natural Scientific Professions ("SACNASP"), which is a
Recognised Overseas Professional Organisation ("ROPO") in terms of the JORC
Code. Mark Craig Stewardson is employed by Mineral Corporation Consultancy and
has sufficient experience that is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which he is undertaking
to qualify as a Competent Person as defined in the JORC Code. Mark Craig
Stewardson consents to the inclusion in this announcement of the matters based
on his information in the form and context in which it appears.
Date: 24/01/2011 07:17:16 Supplied by www.sharenet.co.za
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