Coal of Africa Limited Update to Environmental Authorisation at Vele (2077G)

TIDMCZA

RNS Number : 2077G

Coal of Africa Limited

19 November 2015

ANNOUNCEMENT 19 NOVEMBER 2015

Minister dismisses appeal against environmental authorisation at Vele

Coal of Africa Limited ("CoAL" or the" Company") is pleased to advise that the South African Minister of the Department of Environmental Affairs ("DEA"), Ms Edna Molewa, has dismissed the Appeal against the Environmental Authorisation ("EA") Amendment for the Vele Colliery in the Limpopo Province.

The EA Amendment was granted in January 2015 in terms of the National Environmental Management Act (NEMA) (Act 107 of 1998) and appeals were lodged in April 2015.

In evaluating the grounds of appeal, the Minister considered the fact that the EA Amendment would not pose any additional impacts to those considered in the original Environmental Authorisation issued in terms of Section 24G of NEMA in 2011.

David Brown, CEO of Coal of Africa said:

"We welcome this decision by the Minister and remain firmly committed to the co-existence model implemented at Vele Colliery, which seeks co-operation between mining, agriculture and heritage land uses. The Minister's decision represents another step towards getting the Vele Mine back into production".

CoAL will continue to progress the Renewal and Amendment Applications in respect of Vele's Integrated Water Use Licence ("IWUL") Application under the South African National Water Act ("the Act"). The Colliery was placed under care and maintenance in preparation for the approval and construction of the Plant Modification Project as well as an assessment of forecast global coal prices. The Company previously submitted applications to amend and renew Vele's IWUL and expects these to be granted during H2 CY2015. Subsequently the company also decided to obtain approval relating to a non-perennial stream diversion. This decision is only anticipated in H2 CY2016. The Company will await all regulatory approvals before the final decision to proceed will be placed before the board

AUTHORISED BY:

David Brown

For more information contact:

 
                    Chief Executive                              +27 10 003 
 David Brown         Officer              Coal of Africa          8000 
                    Chief Financial                              +27 10 003 
 De Wet Schutte      Officer              Coal of Africa          8000 
                                                                 +27 10 003 
 Celeste Riekert    Investor Relations    Coal of Africa          8000 
                                          Endeavour Corporate    +61 08 9316 
 Tony Bevan         Company Secretary      Services               9100

Company advisors:

 
 Jos Simson/Emily          Financial PR                        +44 20 
  Fenton                    (United Kingdom)    Tavistock       7920 3150 
 Matthew Armitt/Ross       Nominated Adviser    Peel Hunt      +44 20 
  Allister                  and Broker           LLP            7418 8900 
 Charmane Russell/Olwen    Financial PR         Russell &      +27 11 
  Auret                     (South Africa)       Associates     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).

This information is provided by RNS

The company news service from the London Stock Exchange

END

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November 19, 2015 02:00 ET (07:00 GMT)

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