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Makhado Hard Coking Coal quality confirmed
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 15 MARCH 2013
Makhado Hard Coking Coal quality confirmed
- Wood Mackenzie market report confirms that Makhado Project has the potential to produce world
class hard coking coal
- The Makhado DFS expected to be published during Q2 CY 2013
Coal of Africa Limited ("CoAL" or the "Company") is pleased to announce that Wood Mackenzie engaged to
review the coal to be produced at the Makhado Project (“Makhado”) have confirmed that it has the potential
to be a world class hard coking coal product. Makhado project has potential to produce approximately
2Mtpa of hard coking coal and 3Mtpa of thermal coal.
Wood Mackenzie is the most comprehensive source of knowledge about the world’s energy and metals
industries and were engaged to verify the expected product quality and marketability of the coal. The
Makhado Project represents CoAL's initial project within the greater Soutpansberg Coalfield area and is
currently finalising the additional external verification processes required for the Makhado Definitive
Feasibility Study (“DFS”) on the opencast mining area. The DFS includes both hard coking coal and a
thermal coal fraction and since Q3 CY2012 has been upgraded to provide greater operational certainty and
reduced project risk. The study is expected to be published Q2 CY2013.
CoAL CEO John Wallington commented, “The confirmation of the product quality as a hard coking coal
supports our technical assessment and augurs extremely well for placing this product into the market and
the future development of the project.”
Hard coking coal with good coke strength
Wood Mackenzie has assessed the typical quality of the coking coal at Makhado to be hard coking coal
based on its specifications relative to other international coking coal products. The consideration was based
on the global outlook for coking coal and the coal quality parameters that contribute to Makhado’s value-in-
use in order to estimate the attractiveness of the coal in selected target markets. These markets are closely
aligned to the key growth destinations for seaborne coking coal.
The Report concludes that Makhado's coking coal will fit well within the global coking coal parameter
ranges on all measured coal quality parameters including ash, volatile matter, sulphur, phosphorous,
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
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
Company Registration: ACN 008 905388
David H. Brown - Chairman, John N. Wallington - Chief executive officer, Professor N. A. Nevhutanda - Corporate affairs director
Non-executive directors: Peter G. Cordin, Khomotso B. Mosehla , Dave J. K. Murray, Bernard R. Pryor, Rudolph H. Torlage
caking properties, energy and carbon content, coke strength after reaction (“CSR”) and fluidity. Makhado
coal is comparable with Indonesian, Mongolian and Mozambican products with respect to high vitrinite
content indicating an enhanced coking ability with a rank in the mid to high volatile matter coking range as
measured in %RoVMax.
Makhado has excellent coking coal properties and an ability to support weaker coals in the coke blend. The
relatively high CSR value of 64 will ensure that the coal is classified as a hard coking coal which is
expected to be a significant positive for pricing. The high reactive content and strong caking properties,
combined with the high fluidity will ensure that this coal will have strong marketing prospects in North Asia,
India and South America particularly. In addition to high maximum fluidity, Makhado also demonstrates
good overlap in the plastic ranges with semi-soft coking coal (“SSCC”) and low volatile hard coking coal
(“LV HCC”) indicating it would be a good prime coal in a coking coal blend.
Potential markets identified include South Africa domestic, India, Brazil, Turkey, Japan, Taiwan and South
Korea.
The company is currently awaiting the granting of the new order mining right for Makhado, subject to
completing a black economic empowerment transaction for the project.
AUTHORISED BY:
John Wallington
Chief Executive Officer
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 Endeavour Corporate Services +61 08 9316 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
+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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