Wrap Text
CZA - Coal of Africa Limited - Good progress made with moa for The Vele
Colliery between Coal Of Africa and the save Mapungubwe Coalition
Coal of Africa Limited
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
ISIN AU000000CZA6
JSE/ASX/AIM share code: CZA
("CoAL or the "Company" or the "Group")
GOOD PROGRESS MADE WITH MOA FOR THE VELE COLLIERY BETWEEN COAL OF AFRICA AND
THE SAVE MAPUNGUBWE COALITION
Coal of Africa Limited (CoAL) and the Save Mapungubwe Coalition (`the
Coalition`), are pleased to advise that the process of concluding a Memorandum
of Agreement (MoA) continues to advance and agreement has been reached to
extend the completion date for the MoA between the parties. This follows the
continuing and significant progress on the MoA with regard to Coal of Africa`s
Vele Colliery in Limpopo province. The aim is to conclude the MoA within the
next few months thereby allowing for additional time for the final review of
technical information and conclusion of the definitive agreement with the
various Coalition members. The conclusion of the MoA will follow on the
historic Memorandum of Understanding (MoU) between the parties on 24 November
2011. Following the update in CoAL`s most recent quarterly report published on
30 April 2012, both parties have continued to work together to finalise
details and conclude the process.
Coal of Africa Chief Executive Officer, John Wallington, noted that the
engagement thus far has been both extensive and valuable. "Much work has been
undertaken by both parties, and by independent consultants to reach a
sustainable solution that is in the best interests of all stakeholders. Our
aim of setting a new best practice benchmark for managing and mitigating the
impacts of mining and related activities at the Vele Colliery on the
environment is a tall order, and a responsibility that both CoAL and the
Coalition take very seriously. While the plan has always been to convert the
MoU to the MoA in the shortest possible time, this cannot be rushed, and it is
with this in mind that we have decided to take the time that is needed to
conclude our agreement."
Members of the Coalition recently attended the fourth environmental management
committee meeting as observers. In a statement to the media, Mapungubwe
Action Group Chairperson Nick Hiltermann stated, "The overall aim of these
negotiations is to set a benchmark for best practice in relation to managing
and mitigating the impacts of coal mining and related activities on the
environment, specifically the impact on water and heritage resources - not
only for the Vele Colliery but for all future coal mines".
In terms of the MoU, the parties committed to working together to strengthen
cooperation in the interest of sustainable development and the preservation
and protection of the Mapungubwe cultural landscape. CoAL undertook to share
all information relevant to the impacts of the Vele Colliery on the
environment, including water and heritage resources.
The discussions between the parties have addressed, amongst other matters,
further research, monitoring and modelling of the potential impacts of mining
at the Vele Colliery and requisite amendments and improvements to Limpopo
Coal`s approved environmental management plan and water use licence, and
participation in the environmental management committee and principles for
heritage management and participation in the biodiversity negotiations. In
particular, a preliminary report by an independent wetland and riparian expert
commissioned by CoAL and the Coalition has identified additional water use
activities which were not applicable at the time that the general
authorisation was issued, but which may require further licencing, and the
company is seeking clarification from the Department of Water Affairs in this
regard. Coal of Africa will continue to monitor, manage and mitigate the
impacts of its activities on water resources.
For more information contact:
John Wallington
Chief Executive Officer
Coal of Africa
+27 11 575 4363
Wayne Koonin
Financial Director
Coal of Africa
+27 11 575 4363
Shannon Coates
Company Secretary
Coal of Africa
+61 893 226 776
Sakhile Ndlovu
Investor Relations
Coal of Africa
+27 11 575 6858
Chris Sim/Jeremy Ellis/Neil Elliot
Nominated Adviser
Evolution Securities
+44 20 7071 4300
Jos Simson/Emily Fenton
Financial PR (United Kingdom)
Tavistock
+44 207 920 3150
Ruben Govender
JSE Sponsor
J.P. Morgan Equities Limited
+27 11 507 0430
Charmane Russell/Jane Kamau
Financial PR (South Africa)
Russell & Associates
+27 11 880 3924
+27 82 372 5816
www.coalofafrica.com
About the Coalition:
The Coalition consists of the Endangered Wildlife Trust, BirdLife South
Africa, Wilderness Foundation South Africa, World Wide Fund for Nature South
Africa, Mapungubwe Action Group and the Association of Southern African
Professional Archaeologists.
About CoAL:
CoAL is an AIM/ASX/JSE listed coal exploration, development and mining company
operating in South Africa. CoAL`s key projects include the Vele Colliery
(coking and thermal coal), the Makhado Project (coking coal) and the
Mooiplaats and Woestalleen Collieries (both thermal coal).
The Mooiplaats Colliery commenced production in 2008 and is currently ramping
up to produce 2 Mtpa. The Woestalleen Colliery, acquired through the
acquisition of NuCoal Mining (Pty) Limited in January 2010, currently
processes approximately 2.5Mtpa of saleable coal for domestic and export
markets. The Woestalleen Complex also incorporates three beneficiation plants
with a total processing capacity of 350,000 run-of-mine (ROM) feed tonnes per
month.
CoAL`s Vele Colliery started commercial production in Q1 2012. During the
initial phase, the operation is targeting 2.7 Mtpa ROM production to produce
1.0Mtpa of saleable coking coal. The Makhado Project, CoAL`s flagship project
in the Soutpansberg coalfield, is well into the feasibility stage, with a
Definitive Feasibility Study having been reviewed by the CoAL Board in March
2012. An application for a New Order Mining Right for the Makhado Project was
submitted in January 2011.
In May 2012, CoAL acquired the Chapudi coal project and several other coal
exploration properties in the Soutpansberg coal basin in South Africa from the
previous owners, including Rio Tinto. The acquisition of the Chapudi Coal
Assets strengthens Coal of Africa`s position as one of the most substantial
holders of prospecting and mining rights for coking coal in South Africa`s
Soutpansberg coalfield.
Date: 06/06/2012 17:28:01 Supplied by www.sharenet.co.za
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