Coal of Africa Limited Optimisation Study and FEED package awarded to DRA (0764M)
January 18 2016 - 2:00AM
UK Regulatory
TIDMCZA
RNS Number : 0764M
Coal of Africa Limited
18 January 2016
JOINT ANNOUNCEMENT 18 January 2016
Coal of Africa awards Optimisation Study and Front End
Engineering and Design package to DRA
International engineer and project delivery group DRA Global has
announced that its South African company DRA Projects SA has been
awarded the Optimisation Study and Front End Engineering and Design
(FEED) package for Coal of Africa Limited (CoAL) Makhado coal
project.
The Makhado project is located in the Limpopo Province of South
Africa, and is approximately 80 km from CoAL's existing Vele
Colliery. It is planned that both hard coking coal and thermal coal
will be produced from the Makhado project for export and domestic
consumption. Initially the operation will be an opencast mine, with
potential for expansion to an underground operation in future
years.
DRA's recent award follows its earlier role on the Makhado
project for CoAL in the preparation of the Definitive Feasibility
Study of the coal processing and handling facilities, completed in
early 2013. The scope of the Optimisation and FEED assignment
expands this earlier role by DRA to now include the infrastructure
components of the project, and also the integration of the work of
a number of specialist consultants.
Commenting on the award, Paul Thomson, DRA's CEO, said: "It is
especially pleasing to be awarded this next phase of the
investigation and development of the Makhado coal project. Our
early interaction with CoAL began in 2010 with initial studies and
the new award is testament to the sound relationship established
between our two organisations and our respective project
teams."
Thomson continues: "A key requirement of the Optimisation Study
and FEED phase will be the identification of appropriate cost
reduction opportunities to help optimise the economics of the
project in the current challenging market. DRA and its key staff
have had many years' experience in the design and delivery of
"fit-for-purpose" yet high performance project in coal and other
commodities. We will apply this experience and skill fully to the
Makhado project. We very much look forward to continuing to work
closely with CoAL through future phases of the project."
CoAL's current plan is that work on the Makhado site will begin
during the second semester of 2016, followed by a 26 month build
programme with first coal produced during 2019.
David Brown, CEO of CoAL commented that: "We are pleased to have
DRA on board during the next phase of developing the Makhado
Project. This is an exciting yet crucial phase of the project
development and being associated with DRA during this period will
ensure a successful start to the construction of the Makhado
Project.
About DRA
DRA is a global multi-disciplinary engineering group which
delivers mining, minerals processing and infrastructure services
from concept to commissioning in addition to comprehensive
operations and maintenance services. DRA has offices and operations
in Africa, Australia, Canada, China, Europe, India, and the USA.
The DRA Group provides highly flexible services, allowing it to
meet with needs of multinational mining companies as well as junior
and emerging producers. The company's expertise covers a wide range
of commodities including coal, gold, PGMs, ferrous metals,
diamonds, graphite, uranium, base metals, mineral sands, fertilizer
minerals and rare earths.
About CoAL:
Coal of Africa Limited (CoAL) is an emerging coal exploration,
development and mining company operating in South Africa. CoAL's
key projects include the Vele Colliery (coking and thermal coal),
Makhado Project (coking and thermal coal) and the Greater
Soutpansberg Project /MbeuYashu,
With good access to rail and port infrastructure, CoAL can
effectively service domestic and international markets; providing a
much-needed resource for economic growth and development for the
country and the provinces in which we operate.
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 7920
Fenton (United Kingdom) Tavistock 3150
Matthew Armitt/Ross Nominated Adviser +44 20 7418
Allister and Broker Peel Hunt LLP 8900
Charmane Russell/Olwen Financial PR Russell & Associates +27 11 880
Auret (South Africa) 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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