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COAL OF AFRICA LIMITED - Vele Colliery Update

Release Date: 15/10/2013 08:00
Code(s): CZA     PDF:  
Wrap Text
Vele Colliery Update

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 October 2013

VELE COLLIERY UPDATE

Coal of Africa Limited (“CoAL”) is pleased to announce that its board approved a R220 million expansion at
Vele Colliery in August 2013. This is in line with the Company’s publicly announced strategy to reposition
itself as a project development company focusing on its coking coal assets.

The approval follows the re-evaluation and confirmation of the quality of coal at Vele, and the conclusion of
a review of the current operations. As part of that process and in order for the colliery to reduce the current
cash losses incurred, the colliery will cease production during October in order to prepare for the
construction phase of the announced expansion. The Company has commenced the required fund raising
activities which should be finalised by the end of March 2014. Completion of the expansion is expected by
the end of 2014. Thereafter, the colliery will begin to ramp up operations during 2015, and will be at full
production by the end of that year.

A collaborative and inclusive engagement process with the contractor companies operating at the mine has
been concluded, with 49 people retained. A total of 138 employees have been redeployed to other
operations and 155 employees were retrenched. Throughout this process, the Company attempted to
minimise job losses, while proactively engaging with all its stakeholders to minimise these impacts. This
resulted in 55% of jobs preserved.

The Company’s commitment to recruit from its local labour-sending areas will be upheld upon
commencement of the construction phase in 2014.

The Company will continue to honour all its obligations in terms of the relevant authorisations, and remains
committed to on-going engagement and co-operation with all its key stakeholders.


For more information, contact:

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 ACN 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 4363, Email: admin@coalofafrica.com


David H. Brown – Executive Chairman, Michael G. Meeser – Chief Financial Officer
Non-executive directors: Peter G. Cordin, Khomotso B. Mosehla, David J.K. Murray, Bernard R. Pryor, Rudolph H. Torlage

David Brown                             Executive Chairman                   Coal of Africa                      +27 11 575 4363
Michael Meeser                          Chief Financial Officer              Coal of Africa                      +27 11 575 4363
Celeste Harris                          Investor Relations                   Coal of Africa                      +27 11 575 6857
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/Jeremy Ellis                  Nominated Advisor                    Investec Bank plc                   +44 20 7597 5970
Charmane Russell/Jane Kamau             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) and the Greater Soutpansberg Project/MbeuYashu, including CoAL’s Makhado Project (coking and thermal coal).

Date: 15/10/2013 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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