COAL OF AFRICA LIMITED - Coal of Africa selects feed contractors for the Vele Plant Modification Project

Coal of Africa selects feed contractors for the Vele Plant Modification Project

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                                                                                                                                      19 February 2014

19 February 2014

COAL OF AFRICA SELECTS FEED CONTRACTOR FOR THE VELE PLANT MODIFICATION PROJECT

Coal of Africa (the “Company" or "CoAL") is pleased to announce it has appointed Sedgman South Africa (Segdman)
as the engineer for the front-end engineering design (FEED) for the plant modification project at its Vele Colliery, in
the Limpopo province of South Africa.

CoAL is embarking on the modification and expansion of its Vele Colliery beneficiation plant which will enable it to
optimally produce three coal products (semi-soft coking coal, thermal coal and sized coal) simultaneously at an
expected processing capacity of 2.7 million tonnes of run-of-mine (ROM) per annum. The planned three-month FEED
process will enable CoAL to arrive at a class 1 - EPC estimate.

Segdman will establish the process and engineering design parameters for the plant modification from the results of
exploration infill drilling, coal quality testing and analysis undertaken over the past 12 months. A sample of semi-soft
coking coal was sent to ArcelorMittal South Africa Limited (“AMSA”) in September 2013 for metallurgical coal trials.
This coal yielded positive results and the parties are negotiating an off-take agreement.

The scope of the work for the FEED contract includes:

    -       Identify and improve sections of the existing plant to ensure a 500tph throughput capacity.
    -       A stockpile management philosophy and associated design.
    -       A ROM handling, crushing and screening section.
    -       A de-stoning wash plant.
    -       A sized coal screening plant.
    -       A classifier in the fines beneficiation circuit.
    -       A froth flotation plant for the beneficiation of the ultra-fines.
    -       Products and discard stockpiling and load-out facilities.


The construction of the plant modification is expected to be completed during H1 CY2015 followed by a production
ramp-up phase.

David Brown, Chief Executive Officer stated: “The Company continues to make significant progress in the execution of
our five-point turnaround strategy. The appointment of the FEED contractor as well as the recent product quality
confirmation by ArcelorMittal South Africa has been crucial achievements for the project. We are currently focused on

AU: Coal of Africa Limited, Suite 8, 7 The Esplanade, Mount Pleasant, Perth WA 6153, Australia, Tel: +61 8 9316 9100, Fax: +61 8 9316 5475
ZA: South Block, Summercon Office Park, Cnr Rockery Lane and Sunset Avenue, Lonehill, 2191, Tel: +27 10 003 8000 Fax: +27 11 388 8333 Email: adminza@coalofafrica.com

Bernard R. Pryor – Interim Chairman, David H. Brown – Chief Executive Officer , Michael G. Meeser – Chief Financial Officer
Non-executive directors: Peter G. Cordin, Khomotso B. Mosehla , David J. K. Murray, Rudolph H. Torlage
finalising off-take agreements and obtaining project finance for the plant modification, and are confident that this will
be concluded within our committed time lines”



Authorised by
David Brown
CEO

19 February 2014




For more information contact:
David Brown                             Chief Executive Officer              Coal of Africa                      +27 10 003 8000
Michael Meeser                          Chief Financial Officer              Coal of Africa                      +27 10 003 8000
Celeste Harris                          Investor Relations                   Coal of Africa                      +27 10 003 8038
Tony Bevan                              Company Secretary                    Endeavour Corporate Services        +61 8 9316 9100

Company advisors:
Jos Simson/Emily Fenton                 Financial PR (United Kingdom)        Tavistock                           +44 20 7920 3150
Chris Sim/Jeremy Ellis                  Nominated Adviser                    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), the Greater Soutpansberg Project /MbeuYashu, including CoAL’s Makhado Project (coking and thermal coal).




                                                                                                                                                    
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