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COAL OF AFRICA LIMITED - Strike action at Mooiplaats

Release Date: 25/09/2012 12:25
Code(s): CZA     PDF:  
Wrap Text
Strike action at Mooiplaats

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")




ANNOUNCEMENT                                                             25 September 2012


                              STRIKE ACTION AT MOOIPLAATS


Coal of Africa Limited (“the Company” or “CoAL”) confirms that the National Union of
Mineworkers (NUM) has embarked on protected strike action at the Company’s Mooiplaats
Colliery, near Ermelo, in Mpumalanga province, with effect from this morning Tuesday, 25
September 2012. The strike action is in relation to annual wage negotiations.


The Company proposed a fair wage and benefit offer which amounted to an increase of 22%
(all inclusive). This offer was not accepted by the workers. The NUM then applied for and
was awarded a certificate to embark on a legal strike subject to the provision of 48 hours’
notice to the Company on 18 September 2012.

CoAL immediately countered this through a Section 150 application to the Council for
Conciliation, Mediation and Arbitration to facilitate a discussion between management and
the union to resolve negotiations without the need for strike action. Unfortunately the
mediation process was not successful and resulted in the workers proceeding with strike
action today. Consequently the operations at the colliery have stopped. CoAL confirms that it
will apply the no work no pay rule in relation to this strike.

Mooiplaats directly employs 368 people of which 176 are NUM members. The operation
produces 6,000 run of mine tonnes per day.

We will advise of any material developments regarding the strike situation.

Authorised by
JOHN WALLINGTON
Chief Executive Officer


LIB01/C1AH/2667204.1                                                             Hogan Lovells
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
Sakhile Ndlovu                        Investor Relations               Coal of Africa              +27 11 575 6858
Jos Simson/Emily Fenton               Financial PR                     Tavistock                   +44 20 7920 3150
                                      (United Kingdom)
Chris Sim/Neil Elliot                 Nominated Adviser                Investec Bank plc           +44 20 7597 5970
Robert Smith                          JSE Sponsor                      Investec Bank Limited       +27 11 286 7000
Charmane                   Russell/   Financial PR                     Russell & Associates        +27 11 880 3924 or
Jane Kamau                            (South Africa)                                               +27 82 372 5816




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 Greater Soutpansberg Project, including CoAL’s 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 1.6Mtpa. Mooiplaats produces
thermal coal for Eskom and other domestic users, and for export. In FY 2011 the colliery produced more than 990 000t of
saleable coal, mostly for export.




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