To view the PDF file, sign up for a MySharenet subscription.

COAL OF AFRICA LIMITED - Employees return to Mooiplaats Colliery as National Union of Mineworkers calls off strike

Release Date: 02/11/2012 08:05
Code(s): CZA     PDF:  
Wrap Text
Employees return to Mooiplaats Colliery as National Union of Mineworkers calls off strike

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                                                                      2 NOVEMBER 2012


Employees return to Mooiplaats Colliery as National Union of Mineworkers calls off strike


Coal of Africa Limited (“CoAL” or “the Company”) is pleased to advise that the National Union of
Mineworkers (“NUM”) called-off the wage related strike at its Mooiplaats Colliery on 30 October
2012.


The decision follows a meeting held on Monday 29 October 2012 between NUM senior
representatives and CoAL to resolve the strike action. The employees returned to work on 31
October 2012, and the collective bargaining unit which constitutes 27% of Mooiplaats Colliery’s
monthly salary bill, will receive an increase of 26% cost to company inclusive of medical aid
assistance, housing allowance as well as shift and underground allowances with effect from 1 July
2012. The increase from the original offer of 22% is due to the reallocation of certain allowances into
the basic salary component. The settlement translates to an increase of approximately 1% on
Mooiplaats’ total cost per saleable tonne.


CoAL CEO, John Wallington said, “As Mooiplaats colliery staff return to work, we have initiated
management actions that will reduce operational costs and improve efficiencies at the operation.
Management is fully aware of the impact the strike has had on the profitability of the mine and is
implementing various initiatives to address the long term viability of the operation. We will
complete the full review and restructuring of the colliery that commenced prior to the strike action.”


Authorised by
JOHN WALLINGTON
Chief Executive Officer
2 November 2012




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
Shannon Coates                         Company Secretary                   Coal of Africa                      +61 89 322 6776
Sakhile Ndlovu                         Investor Relations                  Coal of Africa                      +27 11 575 6858
Jos Simson/Emily Fenton                Financial PR (United Kingdom)       Tavistock                           +44 20 7920 3150
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/Jane Kamau            Financial PR (South Africa)         Russell & Associates                +27 11 880 3924 or
                                                                                                               +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 1.6 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.




                                                                  2

Date: 02/11/2012 08:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story