VELE INTEGRATED WATER USE LICENCE SUSPENDED (3432L)
July 29 2011 - 2:01AM
UK Regulatory
TIDMCZA
RNS Number : 3432L
Coal of Africa Limited
29 July 2011
ANNOUNCEMENT 29 July 2011
VELE INTEGRATED WATER USE LICENCE SUSPENDED
Coal of Africa Limited ("CoAL" or the "Company") advises that
the Integrated Water Use Licence ("IWUL") for the Company's Vele
Colliery has been suspended in terms of Section 148(2) (b) of the
South Africa National Water Act, No, 36 of 1998, due to an appeal
to the Water Tribunal submitted by an NGO coalition on 28 July
2011.
The appeal automatically suspends the IWUL unless the Minister
of Environmental and Water Affairs ("the Minister") directs
otherwise. CoAL has the right to and is in the process of preparing
an urgent appeal to the Minister requesting that the IWUL remains
in full force and effect in this interim period and until the final
conclusion of the appeal. If the Company is successful in its
representation to the Minister the Company will be able to continue
all activities, including the water uses per the IWUL.
In the interim, the Company is therefore unable to continue with
activities at the Vele Colliery that require water use, however in
anticipation of recommencing operations, the planning in relation
to other construction and mining activities that do not require the
use of water are ongoing.
CoAL CEO John Wallington said: "Whilst we acknowledge the
coalition's right to appeal against the granting of the IWUL, we
are equally aware of our right to make representations to the
Minister to lift the suspension. The NGO coalition has publicly
indicated their intention to file an appeal. The Company is
actively engaging with the Minister to resolve this appeal process
as soon as possible. Although the appeal limits our use of water at
Vele, mobilisation continues towards bringing the mine into
production. We are pursuing our right with the firm conviction that
the responsible development of the Vele Colliery is in the
interests of the broadest cross-section of our stakeholders and of
South Africa as a whole."
JOHN WALLINGTON
Chief Executive Officer
For more information contact:
John Wallington Chief Executive Officer Coal of Africa +27 11
575 7423
Wayne Koonin Finance Director Coal of Africa +27 11 575 4363
Shannon Coates Company Secretary Coal of Africa +61 893 226
776
Chris Sim/Romil Patel Nominated Adviser Evolution Securities +44
20 7071 4300
Jos Simson/Emily Fenton Financial PR Tavistock +44 207 920
3150
Melanie de Nysschen/ Annerie Britz/ JSE Sponsor Macquarie +27 11
583 2000
Yvette Labuschagne
www.coalofafrica.com
About CoAL:
CoAL is an AIM/ASX/JSE listed coal mining and development
company operating in South Africa. CoAL's key projects include the
Vele Colliery (coking coal), the Makhado Project (coking coal) and
the Mooiplaats and Woestalleen Collieries (both thermal coal).
The Mooiplaats Colliery commenced production in 2008 and is
currently ramping up to produce 2 million tonnes per annum
("Mtpa"). CoAL's Vele Colliery and Makhado Project are expected to
start production in the first half of 2012 and the first half of
2013 respectively. These operations are targeted to collectively
produce an initial 1Mtpa ramping up to a combined annual output of
10Mtpa of coking coal.
In 2010, CoAL completed the ZAR467m acquisition of NuCoal Mining
(Pty) Limited ("NuCoal"), a thermal coal producer with assets in
South Africa in close proximity to CoAL's Mooiplaats Colliery.
NuCoal owns the Woestalleen Colliery, which has a number of
off-take contracts in place and processes approximately 2.5Mtpa of
saleable coal for domestic and export markets. The Woestalleen
Colliery also incorporates two beneficiation plants with a total
processing capacity of 350,000 run of mine feed tonnes per
month.
In November 2010, CoAL agreed to acquire the Chapudi coal
project and several other coal exploration properties in the
Soutpansberg coal basin in South Africa from the previous owners,
including Rio Tinto. When completed, the acquisition of these
projects will significantly extend the scale and scope of certain
of CoAL's existing projects in the region and will more than double
the resource of the existing Makhado Project.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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