Update on MoA with the Save Mapungubwe Coalition (8331E)
June 06 2012 - 11:15AM
UK Regulatory
TIDMCZA
RNS Number : 8331E
Coal of Africa Limited
06 June 2012
ANNOUNCEMENT 06 June 2012
Good progress made with MoA for the Vele Colliery between
Coal of Africa and the Save Mapungubwe Coalition
Coal of Africa Limited (CoAL) and the Save Mapungubwe Coalition
('the Coalition'), are pleased to advise that the process of
concluding a Memorandum of Agreement (MoA) continues to advance and
agreement has been reached to extend the completion date for the
MoA between the parties. This follows the continuing and
significant progress on the MoA with regard to Coal of Africa's
Vele Colliery in Limpopo province. The aim is to conclude the MoA
within the next few months thereby allowing for additional time for
the final review of technical information and conclusion of the
definitive agreement with the various Coalition members. The
conclusion of the MoA will follow on the historic Memorandum of
Understanding (MoU) between the parties on 24 November 2011.
Following the update in CoAL's most recent quarterly report
published on 30 April 2012, both parties have continued to work
together to finalise details and conclude the process.
Coal of Africa Chief Executive Officer, John Wallington, noted
that the engagement thus far has been both extensive and valuable.
"Much work has been undertaken by both parties, and by independent
consultants to reach a sustainable solution that is in the best
interests of all stakeholders. Our aim of setting a new best
practice benchmark for managing and mitigating the impacts of
mining and related activities at the Vele Colliery on the
environment is a tall order, and a responsibility that both CoAL
and the Coalition take very seriously. While the plan has always
been to convert the MoU to the MoA in the shortest possible time,
this cannot be rushed, and it is with this in mind that we have
decided to take the time that is needed to conclude our
agreement."
Members of the Coalition recently attended the fourth
environmental management committee meeting as observers. In a
statement to the media, Mapungubwe Action Group Chairperson Nick
Hiltermann stated, "The overall aim of these negotiations is to set
a benchmark for best practice in relation to managing and
mitigating the impacts of coal mining and related activities on the
environment, specifically the impact on water and heritage
resources - not only for the Vele Colliery but for all future coal
mines".
In terms of the MoU, the parties committed to working together
to strengthen cooperation in the interest of sustainable
development and the preservation and protection of the Mapungubwe
cultural landscape. CoAL undertook to share all information
relevant to the impacts of the Vele Colliery on the environment,
including water and heritage resources.
The discussions between the parties have addressed, amongst
other matters, further research, monitoring and modelling of the
potential impacts of mining at the Vele Colliery and requisite
amendments and improvements to Limpopo Coal's approved
environmental management plan and water use licence, and
participation in the environmental management committee and
principles for heritage management and participation in the
biodiversity negotiations. In particular, a preliminary report by
an independent wetland and riparian expert commissioned by CoAL and
the Coalition has identified additional water use activities which
were not applicable at the time that the general authorisation was
issued, but which may require further licencing, and the company is
seeking clarification from the Department of Water Affairs in this
regard. Coal of Africa will continue to monitor, manage and
mitigate the impacts of its activities on water resources.
For more information contact:
John Wallington Chief Executive Officer Coal of Africa +27 11
575 4363
Wayne Koonin Financial Director Coal of Africa +27 11 575
4363
Shannon Coates Company Secretary Coal of Africa +61 893 226
776
Sakhile Ndlovu Investor Relations Coal of Africa +27 11 575
6858
Chris Sim/Jeremy Ellis/Neil Elliot Nominated Adviser
Evolution Securities +44 20 7071 4300
Jos Simson/Emily Fenton Financial PR (United Kingdom) Tavistock
+44 207 920 3150
Reuben Govender JSE Sponsor J.P. Morgan Equities Limited +27 11
507 0430
Charmane Russell/Jane Kamau Financial PR (South Africa)
Russell & Associates +27 11 880 3924
+27 82 372 5816
www.coalofafrica.com
About the Coalition:
The Coalition consists of the Endangered Wildlife Trust,
BirdLife South Africa, Wilderness Foundation South Africa, World
Wide Fund for Nature South Africa, Mapungubwe Action Group and the
Association of Southern African Professional Archaeologists.
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 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 Mtpa. The Woestalleen Colliery,
acquired through the acquisition of NuCoal Mining (Pty) Limited in
January 2010, currently processes approximately 2.5Mtpa of saleable
coal for domestic and export markets. The Woestalleen Complex also
incorporates three beneficiation plants with a total processing
capacity of 350,000 run-of-mine (ROM) feed tonnes per month.
CoAL's Vele Colliery started commercial production in Q1 2012.
During the initial phase, the operation is targeting 2.7 Mtpa ROM
production to produce 1.0Mtpa of saleable coking coal. The Makhado
Project, CoAL's flagship project in the Soutpansberg coalfield, is
well into the feasibility stage, with a Definitive Feasibility
Study having been reviewed by the CoAL Board in March 2012. An
application for a New Order Mining Right for the Makhado Project
was submitted in January 2011.
In May 2012, CoAL acquired 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. The
acquisition of the Chapudi Coal Assets strengthens Coal of Africa's
position as one of the most substantial holders of prospecting and
mining rights for coking coal in South Africa's Soutpansberg
coalfield.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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