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CZA
CZA
CZA - Coal of Africa Limited - Coal receives approval to take bulk sample from
Makhado project
Coal of Africa Limited
(previously, "GVM Metals Limited")
(Incorporated and registered in Australia)
(Registration number ABN 008 905 388)
JSE Share code: CZA
ASX Share code: CZA
ISIN AU000000CZA6
(`CoAL` or `the Company`)
COAL RECEIVES APPROVAL TO TAKE BULK SAMPLE FROM MAKHADO PROJECT
CoAL is pleased to confirm it has received approval from the South African
Department of Mineral Resources to its application to take a bulk sample from
its Makhado coking coal project ("Makhado Project").
The Makhado Project, in which CoAL holds a 100% interest, is located in
Soutpansberg, 60 kilometres from Musina in the Limpopo Province, close to Rio
Tinto`s Chapudi project and covers an area of more than 23,000 hectares. The
Makhado Project will comprise an opencast mine, planned to deliver 5 million
tonnes of hard coking coal product per annum at full output.
The Company will now commence the sampling process, which will involve
excavating an opencast pit on the Farm Tanga. Approximately 411 000 bank cubic
metres of overburden will be removed to expose 19,100 tonnes of run-of-mine
coal. This coal will be transported to Tshikondeni Colliery where it will be
beneficiated to a 12% ash coking coal. This is expected to provide 4,400 tonnes
of product which will be sampled and analysed at CoAL`s laboratory in Polokwane.
Following the processing and laboratory analysis of the bulk sample, the coal
will be provided to ArcelorMittal SA to test in their coking ovens at
Vanderbiljpark for "value in use" analysis. This testing is necessary in order
to finalise certain terms and conditions of the proposed off-take agreement
between CoAL and ArcelorMittal SA, including terms and conditions relating to
pricing and volumes.
CoAL continues to liaise with the South African Department of Mineral Resources
in relation to effecting the Exchange of Prospecting Rights Agreement entered
into with joint venture companies held by the Rio Tinto Group and Kwezi Group of
South Africa ("Farm Swap"), as announced on 29 October 2009. While the Company
continues to prepare the New Order Mining Right ("NOMR") application for
Makhado, which is progressing well, CoAL is legally restricted from lodging the
NOMR application until the required regulatory approval for the Farm Swap is
received. The Company will advise of any updates in this regard in due course.
Authorised by
Shannon Coates
Company Secretary
11 March 2010
Sponsor
Macquarie First South Advisers (Pty) Limited
For more information contact:
CoAL
Simon Farrell, Managing Director Tel: +61 (0) 417 985 383 or
Tel: +61 (8) 9322 6776
Evolution Securities Tel: +44 (0) 20 7071 4300
Simon Edwards
Chris Sim
Conduit PR Tel: +44 (0) 20 7429 6603
Jos Simson
Leesa Peters
Macquarie First South Advisers Tel: +27 (0) 11 583 2000
Melanie de Nysschen
About CoAL:
Coal of Africa Limited ("CoAL") is an AIM/ASX/JSE listed coal mining and
development company operating primarily in South Africa. CoAL has 4 key
projects including the 113 million tonne (`mt`) Mooiplaats thermal coal mine,
the 656 mt Vele coking coal project, the 1.3 billion tonne Makhado coking coal
project ("Makhado Project") (including resources to be acquired under the Rio
Tinto farm swap arrangements) and the recently acquired Woestalleen Colliery and
associated mining operations producing in excess of 2mpta export quality thermal
coal.
The Mooiplaats coal mine commenced production in 2008 and is currently ramping
up to produce 2 mtpa. CoAL`s Vele and Makhado coking coal projects are expected
to start production in H1 2010 and Q4 2011 respectively, producing an initial 2
mtpa rising to a combined annual output of 10 mtpa of coking coal.
Date: 11/03/2010 07:05:01 Produced by the JSE SENS Department.
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