Coal of Africa Limited Makhado Integrated Water Use Licence Granted (8145L)

TIDMCZA

RNS Number : 8145L

Coal of Africa Limited

14 January 2016

ANNOUNCEMENT 14 JANUARY 2016

INTEGRATED WATER USE LICENCE GRANTED FOR THE mAKHADO PROJECT

Coal of Africa Limited ("CoAL" or the" Company") is pleased to advise that the Integrated Water Use Licence ("IWUL") for its Makhado Project has been granted by the Department of Water and Sanitation ("DWS") for a period of 20 years.

CoAL completed a Class II Definitive Feasibility Study on the Makhado Project during 2013 and anticipates developing the colliery to produce 2.3 million tonnes per annum (Mtpa) of hard coking coal and a further 3.2 Mtpa of thermal coal over the life of mine. Tests confirmed that the coal can be successfully beneficiated to produce high strength coke for the steel manufacturing industry.

David Brown commented, "The granting of the IWUL for the Makhado Project is a significant milestone for CoAL, and is a further step towards bringing the Makhado Project into production. It further signifies government's commitment to and support of our flagship project, and its potential to foster socio economic transformation not only for the communities in our area of operation, but also for the Limpopo Province.

"We continue to focus on our funding requirements in order to commence construction activities in H2 2016."

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

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