COAL OF AFRICA LIMITED - Coal of Africa proposes to place Mooiplaats Colliery on care and maintenance

Coal of Africa proposes to place Mooiplaats Colliery on care and maintenance

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               
3 JUNE 2013


Coal of Africa proposes to place Mooiplaats Colliery on care and maintenance

Coal of Africa Limited ("the Company" or "CoAL") advises that it proposes placing the Mooiplaats Colliery
(“Mooiplaats” or “the Colliery”) on care and maintenance and will embark on a regulatory Section 189A (“S189A”)
process with effect from 3 June 2013 with stakeholders. This decision follows sustained and concerted attempts over
the past two financial years to make the operation profitable and enable it to produce positive cash flows.


The Company’s efforts to improve productivity and establish profitable operations at Mooiplaats, including capital
investment, have been hampered by the global downturn in thermal coal prices over the last year. The situation has
been exacerbated by the inability of the Colliery to ramp up production to achieve required targets due to poor
operational performance and challenging geological conditions. Consequently the Company has continued incurring
an unacceptable level of operational losses.


Mooiplaats recorded a loss of approximately R167million for the financial year ended 30 June 2012 and has
generated an average monthly loss of R20million since the beginning of the current financial year. The Company has
an allocation of three million tonnes in Maputo at the Matola Terminal and is working to mitigate the take or pay
exposure. The Company’s cash position as at 31 March 2013 was US$67.4million.



The regulatory S189A process will begin on 3 June 2013 and will involve a two month consultation period whereby
CoAL must engage with all relevant stakeholders. This process will evaluate alternatives to placing the Colliery on
care and maintenance.

David Brown, Chairman of CoAL said: “This decision has not been taken lightly as CoAL recognises the importance of
conserving jobs, but at the same time the need to preserve the Company’s financial structure and ensure its future
sustainability is paramount.”

Mooiplaats currently employs 290 employees and 258 contractors. Coal of Africa will continue to provide updates on
material developments as they occur.

AUTHORISED BY:

David Brown
Chairman



For more information contact:

David Brown         Chairman                       Coal of Africa           +27 11 575 4363
Sakhile Ndlovu      Investor Relations             Coal of Africa           +27 11 575 6858

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

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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