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COAL OF AFRICA LIMITED - Memorandum of Understanding signed with Vitol Group

Release Date: 07/01/2013 07:05
Code(s): CZA     PDF:  
Wrap Text
Memorandum of Understanding signed with Vitol Group

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
7 January 2013

Memorandum of Understanding signed with Vitol Group


Coal of Africa Limited (“the Company” or “CoAL”) is pleased to announce the signing of a binding
Memorandum of Understanding (“the MOU”) with the Vitol Group of Companies (“Vitol”). Under the terms of
the MOU, which the Company will be operating under from the date of the agreement, Vitol has been
appointed as the Company’s exclusive marketing agent for all export thermal and coking coal for a period
of eight years, except for the Makhado product where the marketing period is five years from the start of
production. The coal available under this MOU excludes all coal subject to current agreements that are in
place as well as any coal off-take that may be agreed with the Company’s strategic equity partners.


In addition, an agreement has also been reached between CoAL and Grindrod whereby Grindrod has
agreed that, whilst CoAL’s option to take up capacity for any Phase 4 Expansion at the TCM export
terminal in Maputo (“TCM”) remains intact, CoAL is no longer obliged to fund its own share of the capital for
the Phase 4 expansion.


CoAL CEO, John Wallington said, “This MOU not only formalises our strategic relationship with Vitol but
also provides CoAL with access to a global marketing network that will greatly assist the development of
export markets for our coking and thermal coal products as we bring our Vele and Makhado projects online.
In addition, our growing relationship with Vitol will assist CoAL with mitigating any take or pay obligations at
TCM as we develop both Vele and Makhado and begin exporting.”


Bob Finch, Head of Vitol Coal, said “We are delighted to have entered into this partnership with CoAL. It
expands our coal trading portfolio and reaffirms our commitment to the South African coal industry, as well
as helping to develop the activities of TCM and underpinning the Phase IV expansion plans.”

For more information contact:
David Brown                                        Chairman                                             Coal of Africa                                        +27 11 575 4363
John Wallington                                    Chief Executive Officer                              Coal of Africa                                        +27 11 575 4363
Sakhile Ndlovu                                     Investor Relations                                   Coal of Africa                                        +27 11 575 6858
Tony Bevan                                         Company Secretary                                    Endevour Corporate Services                           +61 08 916 9100

Company advisors:
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
Charmane Russell/James Duncan                      Financial PR (South Africa)                          Russell & Associates                                  +27 11 880 3924 or
                Suite 8,7 The Esplanade, Mt Pleasant, Perth WA 6153, Australia, Tel: +61 8 9316 9100, Fax: +61 8 9315 5475, Email: perth@coalofafrica.com CAN 008 905388
 ZA: 2nd Floor, Gabba Building, The Campus, 57 Sloane Street, Bryanston, Johannesburg, South Africa 2021, Tel: +27 11 575 4363, Fax: +27 11 576 7484, Email: adminza@coalofafrica.co.za
                                UK: 5th Floor, 33 St. James’s Street, London, SW1A 1HD, United Kingdom, Tel: +44 (0) 20 7839 8840, Fax: +44 (0) 20 7004 0959


                       David H. Brown - Chairman, John N. Wallington - Chief executive officer, Professor N. A. Nevhutanda - Corporate affairs director, Bernard R. Pryor - Non-executive director,
                     Peter G. Cordin - Non-executive director, Khomotso B. Mosehla - Non-executive director, Dave J. K. Murray - Non-executive director, Rudolph H. Torlage - Non-executive director
                                                                                                                 +27 82 372 5816
Investec Bank Limited is the nominated JSE Sponsor
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).




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