Wrap Text
Forbes Coal operations update
FORBES & MANHATTAN COAL CORP.
(Registration number: 002116278)
(External company registration number: 2011/011661/10)
Share code on the Toronto Stock Exchange: FMC
Share code on the JSE Limited: FMC
ISIN: CA3451171050
(“Forbes Coal”)
OPERATIONS AT SOUTH AFRICAN MINES AND PROCESSING PLANT REMAIN
SUSPENDED
TORONTO, ONTARIO – November 1, 2012: Forbes & Manhattan Coal
Corp.
(TSX: FMC) (JSE: FMC) re-iterated today that operations at its
Magdalena and Aviemore mines and coal processing plant near
Dundee in South Africa’s KwaZulu-Natal province will remain
suspended until such time as the safety of all employees and
security of all company property can be assured.
The company’s decision to suspend operations followed an
incident yesterday in which two employees were injured and
subsequently died. The incident is under investigation by the
South African Police Service.
Ahead of yesterday’s incident, some 750 employees of the company
have been engaged in a protracted, wage-related strike marred by
breaches of agreed picketing rules, intimidation and damage to
company property.
Forbes Coal President and Chief Executive Officer Stephan Theron
said: “Management is committed to reaching an early settlement
with striking employees, in the interests of all stakeholders.
However, resumption of negotiations is predicated on a
commitment to orderly conduct, and to the following of due
process under the South African Labour Relations Act.”
About Forbes Coal
Forbes Coal is a growing coal producer in southern Africa. It
holds a majority interest in two operating mines through its
100% interest in Forbes Coal (Pty) Ltd., a South African company
("Forbes Coal Dundee") which has a 70% interest in Zinoju Coal
(Pty) Ltd. ("Zinoju"). Zinoju holds a 100% interest in the
Magdalena bituminous mine and the Aviemore anthracite mine in
South Africa (collectively, “the Forbes Coal Dundee
Properties”). The mines have a substantial resource base and
each mine has a projected life span in excess of 20 years.
Forbes Coal is in the process of increasing production at both
mines using existing infrastructure and capacity. The Company
has in-place transportation infrastructure allowing its coal to
reach both export corridors and the growing domestic coal
market. Forbes Coal has a strong balance sheet and an
experienced coal-focused management team.
Cautionary Notes
The ability of the Company to increase production amounts has
not been the subject of a feasibility study and there is no
certainty that the proposed expansion will be economically
feasible.
This press release contains “forward-looking information” within
the meaning of applicable Canadian securities legislation.
Forward-looking information includes, but is not limited to,
statements with respect to anticipated production results with
respect to the Forbes Coal Dundee Properties, future financial
or operating performance of the Company and its projects,
statements regarding the anticipated improvements in logistical
support and anticipated improvements in sales, statements made
with respect to prospects for the business of the Company,
requirements for additional capital, government regulation of
the mineral exploration industry, environmental risks,
acquisition of mining licences, title disputes or claims,
limitations of insurance coverage and the timing and possible
outcome of pending litigation and regulatory matters. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as “plans”, “expects” or “does
not expect”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates” or “does not anticipate”,
or “believes”, or variations of such words and phrases or state
that certain actions, events or results “may”, “could”, “would”,
“might” or “will be taken”, “occur” or “be achieved”. Forward-
looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of the
Company to be materially different from those expressed or
implied by such forward-looking information, including but not
limited to: general business, economic, competitive, foreign
operations, political and social uncertainties; a history of
operating losses; delay or failure to receive board or
regulatory approvals; timing and availability of external
financing on acceptable terms; not realizing on the potential
benefits of the proposed transaction; conclusions of economic
evaluations; changes in project parameters as plans continue to
be refined; future prices of mineral products; failure of plant,
equipment or processes to operate as anticipated; accidents,
labour disputes and other risks of the mining industry; and,
delays in obtaining governmental approvals or required financing
or in the completion of activities. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially from those contained in forward-
looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There
can be no assurance that such information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward
looking information. The Company does not undertake to update
any forward-looking information, except in accordance with
applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
Stephan Theron
President and Chief Executive Officer
+1 (416) 861-5912
Email: stheron@forbescoal.com
Samantha Thomson
Investor relations Manager
+1 (416) 309-2957
Email: sthomson@forbescoal.com
Johannesburg
2 November 2012
Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)
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