Wednesday, 28 Dec 2011
Coal of Africa has agreed to the sale of the NiMag Group of companies, consisting of Nimag and Metalloy Resources Investments by way of a management buyout.
CoAL considers the NiMag Group asset to be non-core and it has been classified as an asset held for sale.
The directors of NiMag will purchase a 100% interest in the group for BRL 54 million of which 60% is being funded by a combination of equity contributions and bank debt with the remaining 40% being financed by way of an interest bearing vendor financing loan provided by CoAL repayable over four years.
The transaction is expected to be completed by end-February 2012.
Mr John Wallington CoAL CEO said "This is a specialist business that under the current management team will continue to grow and develop over time. He said that our focus at CoAL is on the development of our coking coal and thermal coal businesses. Fast tracking Vele into production and concluding the feasibility study for Makhado are priorities for us. Our management and financial resources are focussed on that."
(Sourced from miningmx.com)
Showing posts with label COAL of Africa. Show all posts
Showing posts with label COAL of Africa. Show all posts
Wednesday, December 28, 2011
Friday, November 4, 2011
CoAL raises funds for projects
Shares placed with select investors at a discount of 10,5% to the Wednesday price on London’s AIM, funds to be used for growth projects
Friday, 4 November, 2011
COAL of Africa (CoAL) has raised about $106m in a share placement yesterday, giving it the money to buy the Chapudi thermal and coking coal prospect from Rio Tinto, advance its Makhado project and bring its Vele mine into production early next year.
The shares were placed with select investors at R6,50 each, a 7% discount to Wednesday’s close of R7 on the JSE. The discount was 10,5% to the Wednesday price on London’s AIM. The placing price was set at 51p. The shares closed down 6c at R6,94.
CoAL CEO John Wallington said the funds would be split between the growth projects the company has in its portfolio.
"This funding buys us the time to carry out the projects I’ve referred to, but it also gives us the time to make the right strategic decisions over the next six to 12 months," he said.
Management would restructure the business over the next year to avoid having to come to the market for funds again, he said.
CoAL has allocated $25m to starting Vele, paying the first tranche of $43m to Rio Tinto and a year of exploration work at Chapudi worth $15m. It has set aside $17m, which will be used to pay a deposit to Transnet.
CoAL could not come to the market any earlier because of difficulty obtaining permits for its Vele coking coal project in Limpopo. There were objections from environmentalists because of its proximity to the Mapungubwe World Heritage site. CoAL has now secured all the permits it needs to reactivate the Vele project and bring it into production early next year.
The market had been expecting the share placement. "No huge surprise given the poor sets of results and recent successes in permitting," Numis Securities said in a note.
Merrill Lynch said the placement would dilute earnings per share, but it maintained a "buy" rating on the share.
(sourced BusinessDay)
Friday, 4 November, 2011
COAL of Africa (CoAL) has raised about $106m in a share placement yesterday, giving it the money to buy the Chapudi thermal and coking coal prospect from Rio Tinto, advance its Makhado project and bring its Vele mine into production early next year.
The shares were placed with select investors at R6,50 each, a 7% discount to Wednesday’s close of R7 on the JSE. The discount was 10,5% to the Wednesday price on London’s AIM. The placing price was set at 51p. The shares closed down 6c at R6,94.
CoAL CEO John Wallington said the funds would be split between the growth projects the company has in its portfolio.
"This funding buys us the time to carry out the projects I’ve referred to, but it also gives us the time to make the right strategic decisions over the next six to 12 months," he said.
Management would restructure the business over the next year to avoid having to come to the market for funds again, he said.
CoAL has allocated $25m to starting Vele, paying the first tranche of $43m to Rio Tinto and a year of exploration work at Chapudi worth $15m. It has set aside $17m, which will be used to pay a deposit to Transnet.
CoAL could not come to the market any earlier because of difficulty obtaining permits for its Vele coking coal project in Limpopo. There were objections from environmentalists because of its proximity to the Mapungubwe World Heritage site. CoAL has now secured all the permits it needs to reactivate the Vele project and bring it into production early next year.
The market had been expecting the share placement. "No huge surprise given the poor sets of results and recent successes in permitting," Numis Securities said in a note.
Merrill Lynch said the placement would dilute earnings per share, but it maintained a "buy" rating on the share.
(sourced BusinessDay)
Thursday, September 15, 2011
Coal of Africa ink environment deal
Thursday, 15 Sep 2011
It is reported that Australian junior mining company Coal of Africa Limited edged closer to the possibility of being able to mine at Vele, its new mine which has been shut for more than a year after activists objected due to its proximity to the ancient Mapungubwe cultural site in Limpopo.
The company signed the memorandum of agreement with South African National Parks and the Department of Environmental Affairs as part of the steps it must take to have a compliance notice served on it last year lifted. The compliance notice shut down activities at Vele after the Department of Environmental Affairs said CoAL was not in compliance with the National Environmental Management Act.
A coalition of civil society organisations which includes the Endangered Wildlife Trust criticised the agreement for the breadth and scope of the blanket confidentiality provision in the agreement.
It said "Considering the Department of Environmental Affairs is concluding an agreement that relates to a national treasure like the Mapungubwe National Park on behalf of the South African public, all information around such negotiations and the implementation of the agreement should be public as a matter of principle.”
The company said as part of the agreement, CoAL has agreed to work with SANParks and the department to find biodiversity offset programmes and action plans to preserve the area around the site.
Mr John Wallington CoAL CEO said the agreement was the first of its kind.
The agreement was concluded in two months, he said, and the groups were anxious to make progress on defining the action plans over the next three months. Mr Wallington said "We will have more detail once we have put meat on the bones. I think this is fantastic news for the country and what it does is create a new benchmark for co-operating with various stakeholders for this type of development."
The agreement calls for the monitoring and implementation of the plans through a steering committee and adequate staffing and funding of efforts to measure compliance and implementation.
The agreement brings CoAL a step closer to mining. However, it must still have its water use licence reinstated after it was suspended. The matter is still subject to a ruling by the Water Tribunal.
There is also a court fight the project must face brought by the coalition of activists against the project which is challenging its mining licence.
(Sourced from Businessday)
It is reported that Australian junior mining company Coal of Africa Limited edged closer to the possibility of being able to mine at Vele, its new mine which has been shut for more than a year after activists objected due to its proximity to the ancient Mapungubwe cultural site in Limpopo.
The company signed the memorandum of agreement with South African National Parks and the Department of Environmental Affairs as part of the steps it must take to have a compliance notice served on it last year lifted. The compliance notice shut down activities at Vele after the Department of Environmental Affairs said CoAL was not in compliance with the National Environmental Management Act.
A coalition of civil society organisations which includes the Endangered Wildlife Trust criticised the agreement for the breadth and scope of the blanket confidentiality provision in the agreement.
It said "Considering the Department of Environmental Affairs is concluding an agreement that relates to a national treasure like the Mapungubwe National Park on behalf of the South African public, all information around such negotiations and the implementation of the agreement should be public as a matter of principle.”
The company said as part of the agreement, CoAL has agreed to work with SANParks and the department to find biodiversity offset programmes and action plans to preserve the area around the site.
Mr John Wallington CoAL CEO said the agreement was the first of its kind.
The agreement was concluded in two months, he said, and the groups were anxious to make progress on defining the action plans over the next three months. Mr Wallington said "We will have more detail once we have put meat on the bones. I think this is fantastic news for the country and what it does is create a new benchmark for co-operating with various stakeholders for this type of development."
The agreement calls for the monitoring and implementation of the plans through a steering committee and adequate staffing and funding of efforts to measure compliance and implementation.
The agreement brings CoAL a step closer to mining. However, it must still have its water use licence reinstated after it was suspended. The matter is still subject to a ruling by the Water Tribunal.
There is also a court fight the project must face brought by the coalition of activists against the project which is challenging its mining licence.
(Sourced from Businessday)
Wednesday, August 24, 2011
CoAL shirks legal green obligations with big promises
August 24 2011
In recent weeks, Australian mining company Coal of Africa Limited (CoAL) has been ramping up public relations around the potential benefits of its proposed 8 500 hectare largely opencast coal mine in the Mapungubwe Cultural Landscape, next to the Mapungubwe National Park and World Heritage Site, and across the river from the Zimbabwe component of the forthcoming Greater Mapungubwe Transfrontier Conservation Area.
Thousands of jobs, and billions of rands’ investment have been promised, and we find these same claims repeated without critical scrutiny in permits issued by authorities. It is a pity that so few government officials or journalists are prepared to investigate and scrutinise the assumptions and claims made by CoAL. Our failure to assess and understand what the benefits and negative impacts of mining really are creates the danger that we are making decisions based on the self-interested claims of some members of the mining sector – decisions for which we will bear the costs for generations to come.
A favourite argument of CoAL is that the exploitation of this new source of coking coal in Limpopo will bring inflows of revenue into Limpopo province. FIN24 reported in July that at an average price of $200 (R1 439.23) a ton, 10 million tons a year would mean an inflow of $2 billion or R15bn a year for Limpopo.
But instead of being dazzled by big numbers in foreign direct investment, let’s examine the flow of money. In the case of CoAL and its Vele colliery, gross revenue will not flow into Limpopo province, but into CoAL’s subsidiary company, Limpopo Coal (assuming that the revenue will not be channelled, legitimately, elsewhere).
Given the upfront capital cost of mining, it will be years before any profit is made that can be taxed for the benefit of the country. When profits are made, Limpopo Coal will declare dividends to CoAL.
CoAL’s website lists its 20 top shareholders, and of those more than 75 percent are offshore nominee holding companies. The largest local shareholder is ArcelorMittal South Africa, with 15.98 percent of CoAL shares. However, 53 percent of ArcelorMittal SA’s shares are held by foreign investors. It appears likely that at least 70 percent of dividends that accrue to the shareholders of CoAL will be repatriated offshore, with additional offshore distribution to foreign investors through Arcelor Mittal SA.
Another argument by CoAL is that the proposed colliery will create employment opportunities within Limpopo. Its projections indicate that during the three-year construction phase, contractor labour levels will peak at about 2 500. Thereafter, the mine will employ about 826 personnel during the operational phase with employment falling to 250 as the mine winds up.
What CoAL never discusses is the detrimental impact that its operations may have on destroying existing local jobs. One example of this is the impact that the mine may have on farm workers. According to Limpopo Coal’s Socio-Economic Impact Assessment Report, there are 1 110 permanent and 4 650 temporary farm workers employed in the area. It also looks likely that farmers surrounding the mine will sell their properties and move out. The numbers are such that, if only one commercial farm stops farming, the mine will be unable to make up for the losses in employment and food production.
Eco-tourism is another area where the mine is expected to destroy jobs or limit the capacity for growth. David Evans, the chairman of the Tourism Working group of the Greater Mapungubwe Transfrontier Conservation Areas, estimates that there are about 560 sustainable tourism related jobs in the area with estimates of those increasing to about 3 500 over time.
Mapungubwe is regarded as the catalyst that will spur major long-term regional tourism that will benefit the Limpopo Province, southeastern Botswana and southwestern Zimbabwe.
Many people and organisations opposed to the colliery’s location argue that having a mine only 6km away from a World Heritage Site and visible from the famous Mapungubwe Hill will detract from Mapungubwe’s sense of place, and may compromise its World Heritage Site status.
The fact of the mine’s location outside the National Park – recently quoted triumphantly by David Gleason in Business Day – also presupposes that only protected areas and heritage sites contain anything of importance and significance. This means that anything outside of them, such as water catchments, major biodiversity areas, undiscovered cultural artefacts and river headwaters deserve no protection. Today we should know better about what regions are appropriate for industrial development and which are not.
Let’s consider the impact of the colliery on water use. In March, the Department of Water Affairs granted a licence to Limpopo Coal to extract 2.4 billion litres of water from the Limpopo river, despite important strategic documents prepared by itself warning against the water-stressed nature of this catchment.
It also granted the licence on a flawed reserve determination, taking into account human water requirements for only a small proportion of people who live in the area. We also know that its “closed system” means that none of this water will be put back into the system. Further pressure on the Limpopo and groundwater in the area will have far-reaching and long-lasting effects on the water resources, socio-economic development and wellbeing of the people of Limpopo province.
With its back against the wall, their opposition to the colliery ignored by the Department of Mineral Resources, the Department of Environmental Affairs’ efforts have been reduced to attempts to limit the impact of mining operations by limiting the extent of these and by requiring Limpopo Coal to offset the impact by increasing the size of the transfrontier park and other commitments. In reality, this leads to a lose-lose outcome where tourism, agricultural jobs and water quality may be negatively affected, while mining is not permitted to take place in a manner that is optimal or cost-effective.
CoAL continues to profess its high concern for the environment, while proclaiming its ignorance of its legal obligations to secure environmental permits before commencing construction in April 2010. It also has yet to explain why it has, to date, failed to entertain or respond to suggestions of abandoning the opencast pits at Vele colliery for underground operations, as the mines near the Kruger Park have done.
Hundreds of local communities, not to mention our many polluted streams and rivers, bear the scars of exaggerated claims of economic benefits and unfulfilled promises by mining companies.
Have we, as a country, properly examined the actual benefits of mining, or are we allowing ourselves to be dictated to by short-term private interests, at the cost of our heritage?
Nick Hiltermann is the chairman of the Mapungubwe Action Group, writing here on behalf of the coalition of civil society organisations opposed to the proposed Vele colliery outside Mapungubwe.
(sourced IOL)
In recent weeks, Australian mining company Coal of Africa Limited (CoAL) has been ramping up public relations around the potential benefits of its proposed 8 500 hectare largely opencast coal mine in the Mapungubwe Cultural Landscape, next to the Mapungubwe National Park and World Heritage Site, and across the river from the Zimbabwe component of the forthcoming Greater Mapungubwe Transfrontier Conservation Area.
Thousands of jobs, and billions of rands’ investment have been promised, and we find these same claims repeated without critical scrutiny in permits issued by authorities. It is a pity that so few government officials or journalists are prepared to investigate and scrutinise the assumptions and claims made by CoAL. Our failure to assess and understand what the benefits and negative impacts of mining really are creates the danger that we are making decisions based on the self-interested claims of some members of the mining sector – decisions for which we will bear the costs for generations to come.
A favourite argument of CoAL is that the exploitation of this new source of coking coal in Limpopo will bring inflows of revenue into Limpopo province. FIN24 reported in July that at an average price of $200 (R1 439.23) a ton, 10 million tons a year would mean an inflow of $2 billion or R15bn a year for Limpopo.
But instead of being dazzled by big numbers in foreign direct investment, let’s examine the flow of money. In the case of CoAL and its Vele colliery, gross revenue will not flow into Limpopo province, but into CoAL’s subsidiary company, Limpopo Coal (assuming that the revenue will not be channelled, legitimately, elsewhere).
Given the upfront capital cost of mining, it will be years before any profit is made that can be taxed for the benefit of the country. When profits are made, Limpopo Coal will declare dividends to CoAL.
CoAL’s website lists its 20 top shareholders, and of those more than 75 percent are offshore nominee holding companies. The largest local shareholder is ArcelorMittal South Africa, with 15.98 percent of CoAL shares. However, 53 percent of ArcelorMittal SA’s shares are held by foreign investors. It appears likely that at least 70 percent of dividends that accrue to the shareholders of CoAL will be repatriated offshore, with additional offshore distribution to foreign investors through Arcelor Mittal SA.
Another argument by CoAL is that the proposed colliery will create employment opportunities within Limpopo. Its projections indicate that during the three-year construction phase, contractor labour levels will peak at about 2 500. Thereafter, the mine will employ about 826 personnel during the operational phase with employment falling to 250 as the mine winds up.
What CoAL never discusses is the detrimental impact that its operations may have on destroying existing local jobs. One example of this is the impact that the mine may have on farm workers. According to Limpopo Coal’s Socio-Economic Impact Assessment Report, there are 1 110 permanent and 4 650 temporary farm workers employed in the area. It also looks likely that farmers surrounding the mine will sell their properties and move out. The numbers are such that, if only one commercial farm stops farming, the mine will be unable to make up for the losses in employment and food production.
Eco-tourism is another area where the mine is expected to destroy jobs or limit the capacity for growth. David Evans, the chairman of the Tourism Working group of the Greater Mapungubwe Transfrontier Conservation Areas, estimates that there are about 560 sustainable tourism related jobs in the area with estimates of those increasing to about 3 500 over time.
Mapungubwe is regarded as the catalyst that will spur major long-term regional tourism that will benefit the Limpopo Province, southeastern Botswana and southwestern Zimbabwe.
Many people and organisations opposed to the colliery’s location argue that having a mine only 6km away from a World Heritage Site and visible from the famous Mapungubwe Hill will detract from Mapungubwe’s sense of place, and may compromise its World Heritage Site status.
The fact of the mine’s location outside the National Park – recently quoted triumphantly by David Gleason in Business Day – also presupposes that only protected areas and heritage sites contain anything of importance and significance. This means that anything outside of them, such as water catchments, major biodiversity areas, undiscovered cultural artefacts and river headwaters deserve no protection. Today we should know better about what regions are appropriate for industrial development and which are not.
Let’s consider the impact of the colliery on water use. In March, the Department of Water Affairs granted a licence to Limpopo Coal to extract 2.4 billion litres of water from the Limpopo river, despite important strategic documents prepared by itself warning against the water-stressed nature of this catchment.
It also granted the licence on a flawed reserve determination, taking into account human water requirements for only a small proportion of people who live in the area. We also know that its “closed system” means that none of this water will be put back into the system. Further pressure on the Limpopo and groundwater in the area will have far-reaching and long-lasting effects on the water resources, socio-economic development and wellbeing of the people of Limpopo province.
With its back against the wall, their opposition to the colliery ignored by the Department of Mineral Resources, the Department of Environmental Affairs’ efforts have been reduced to attempts to limit the impact of mining operations by limiting the extent of these and by requiring Limpopo Coal to offset the impact by increasing the size of the transfrontier park and other commitments. In reality, this leads to a lose-lose outcome where tourism, agricultural jobs and water quality may be negatively affected, while mining is not permitted to take place in a manner that is optimal or cost-effective.
CoAL continues to profess its high concern for the environment, while proclaiming its ignorance of its legal obligations to secure environmental permits before commencing construction in April 2010. It also has yet to explain why it has, to date, failed to entertain or respond to suggestions of abandoning the opencast pits at Vele colliery for underground operations, as the mines near the Kruger Park have done.
Hundreds of local communities, not to mention our many polluted streams and rivers, bear the scars of exaggerated claims of economic benefits and unfulfilled promises by mining companies.
Have we, as a country, properly examined the actual benefits of mining, or are we allowing ourselves to be dictated to by short-term private interests, at the cost of our heritage?
Nick Hiltermann is the chairman of the Mapungubwe Action Group, writing here on behalf of the coalition of civil society organisations opposed to the proposed Vele colliery outside Mapungubwe.
(sourced IOL)
Wednesday, August 17, 2011
CoAL Chapudi deal extended again
Wednesday, 17 Aug 2011
COAL of Africa Limited the coal development company operating in South Africa said that it expected its acquisition of the Chapudi coal project to be finalized by the end of April next year. The original fulfillment date was first set at August 1 and earlier this month extended to August 12.
CoAL is buying the Chapudi coal project and related exploration properties in South Africa's Limpopo province from joint venture companies held by Rio Tinto Minerals Development and Kwezi Mining for USD 75 million.
The company said in a statement to the JSE that irrevocable undertakings from the vendor shareholders have been obtained in terms of the sale and purchase agreement.
Entered into in November, the agreement has been extended to allow for the remaining regulatory approvals required.
Once concluded CoAL will add an estimated 1,040 million tonne JORC compliant resource of which 90 million tonnes is measured, 220 million tonnes indicated and 730 million tonnes inferred to its portfolio of assets.
Mr John Wallington CEO of CoAL said that “The acquisition of the Chapudi Coal Project and the related exploration properties bolsters our existing coking coal projects with the Chapudi Coal Project alone doubling our Makhado Project's 947 million tonnes resource, thereby cementing CoAL's position as the dominant landholder in one of South Africa's most prospective coal basins.”
(sourced Miningmx)
COAL of Africa Limited the coal development company operating in South Africa said that it expected its acquisition of the Chapudi coal project to be finalized by the end of April next year. The original fulfillment date was first set at August 1 and earlier this month extended to August 12.
CoAL is buying the Chapudi coal project and related exploration properties in South Africa's Limpopo province from joint venture companies held by Rio Tinto Minerals Development and Kwezi Mining for USD 75 million.
The company said in a statement to the JSE that irrevocable undertakings from the vendor shareholders have been obtained in terms of the sale and purchase agreement.
Entered into in November, the agreement has been extended to allow for the remaining regulatory approvals required.
Once concluded CoAL will add an estimated 1,040 million tonne JORC compliant resource of which 90 million tonnes is measured, 220 million tonnes indicated and 730 million tonnes inferred to its portfolio of assets.
Mr John Wallington CEO of CoAL said that “The acquisition of the Chapudi Coal Project and the related exploration properties bolsters our existing coking coal projects with the Chapudi Coal Project alone doubling our Makhado Project's 947 million tonnes resource, thereby cementing CoAL's position as the dominant landholder in one of South Africa's most prospective coal basins.”
(sourced Miningmx)
Tuesday, July 26, 2011
Australian Coal of Africa beginning South African operations
Tue,Jul 26,2011
By Charles Kennedy
CoAL is involved in coal mining activities outside Musina in Limpopo, five miles from the Mapungubwe, designated in 2003 by United Nations Educational, Scientific and Cultural Organization (UNESCO) as a World Heritage Site.
Australian Coal of Africa, (CoAL), is due to resume production at its Vele Colliery project in Limpopo.
Briefing journalists in Pretoria, South Africa’s Department of Environmental Affairs Department Deputy Director-General Ishaam Abader said that his governmental agency granted environmental authorization to the CoAL mining company two weeks ago, BuaNews news agency reported.
CoAL is involved in coal mining activities outside Musina in Limpopo, five miles from the Mapungubwe, designated in 2003 by United Nations Educational, Scientific and Cultural Organization (UNESCO) as a World Heritage Site.
Seeking to quell controversy over the governmental decision, Abader said that his department was satisfied on the basis of information provided to it by CoAL and that its activities would be required to comply with the department’s environmental statutes.
According to Abader, the authorization came with conditions, with the official telling reporters, "This activity shall resume within a period of one month from the date of issue unless directed otherwise. If resumption of the activity does not occur within that period, the authorization lapses and a new application for environmental authorization shall be made in order for the activity to resume."
CoAL had earlier illegally commenced mining activities without environmental authorization, which contravened South Africa’s National Environment Management Act (NEMA), leading the Department of Environmental Affairs to cite the company with a compliance notice, which ended all mining activity at the site. As a result of the sanctions, CoAL paid nearly $1.47 million in administrative fines to the Department of Environmental Affairs.
Source OilPrice
By Charles Kennedy
CoAL is involved in coal mining activities outside Musina in Limpopo, five miles from the Mapungubwe, designated in 2003 by United Nations Educational, Scientific and Cultural Organization (UNESCO) as a World Heritage Site.
Australian Coal of Africa, (CoAL), is due to resume production at its Vele Colliery project in Limpopo.
Briefing journalists in Pretoria, South Africa’s Department of Environmental Affairs Department Deputy Director-General Ishaam Abader said that his governmental agency granted environmental authorization to the CoAL mining company two weeks ago, BuaNews news agency reported.
CoAL is involved in coal mining activities outside Musina in Limpopo, five miles from the Mapungubwe, designated in 2003 by United Nations Educational, Scientific and Cultural Organization (UNESCO) as a World Heritage Site.
Seeking to quell controversy over the governmental decision, Abader said that his department was satisfied on the basis of information provided to it by CoAL and that its activities would be required to comply with the department’s environmental statutes.
According to Abader, the authorization came with conditions, with the official telling reporters, "This activity shall resume within a period of one month from the date of issue unless directed otherwise. If resumption of the activity does not occur within that period, the authorization lapses and a new application for environmental authorization shall be made in order for the activity to resume."
CoAL had earlier illegally commenced mining activities without environmental authorization, which contravened South Africa’s National Environment Management Act (NEMA), leading the Department of Environmental Affairs to cite the company with a compliance notice, which ended all mining activity at the site. As a result of the sanctions, CoAL paid nearly $1.47 million in administrative fines to the Department of Environmental Affairs.
Source OilPrice
Wednesday, July 6, 2011
Coal of Africa gets environmental approval for Vele coking coal project
Wednesday, 06 July 2011
On July 6, Western Australia-based leading coal and metals processing company Coal of Africa Limited (CoAL) announced that it has received environmental approval from South Africa's Department of Environmental Affairs (DEA) effective as of July 5, 2011 for its Vele Colliery coking coal project in South Africa. However, Coal of Africa will have to fulfill some specific conditions since the project is located in close vicinity to a UNESCO World Heritage Site.
The project was suspended last August because of environmental controversies. The construction at Vele is expected to be completed within six to nine months. Vele will ramp up to an initial production profile of one million mt per annum.
John Wallington, chief executive officer of CoAL, commented, "We are very aware of our broader obligation to the responsible development of our assets, and we are acutely aware of the sensitivity of the area and the significant responsibilities the approval brings. We are committed to engaging continually with all key stakeholders as development resumes and operations commence."
On July 6, Western Australia-based leading coal and metals processing company Coal of Africa Limited (CoAL) announced that it has received environmental approval from South Africa's Department of Environmental Affairs (DEA) effective as of July 5, 2011 for its Vele Colliery coking coal project in South Africa. However, Coal of Africa will have to fulfill some specific conditions since the project is located in close vicinity to a UNESCO World Heritage Site.
The project was suspended last August because of environmental controversies. The construction at Vele is expected to be completed within six to nine months. Vele will ramp up to an initial production profile of one million mt per annum.
John Wallington, chief executive officer of CoAL, commented, "We are very aware of our broader obligation to the responsible development of our assets, and we are acutely aware of the sensitivity of the area and the significant responsibilities the approval brings. We are committed to engaging continually with all key stakeholders as development resumes and operations commence."
Thursday, March 17, 2011
Coal of Africa debt restructure
CEO says company will not go back to the market to keep wheels rolling
Thu, Mar 17, 2011 06:53:32 AM
By Allan Seccombe, Business Day
COAL of Africa (CoAL) will announce details of a new debt structure in coming days ahead of a $20m debt repayment to JPMorgan on March 24, plus raise extra cash to give the company "headroom" for its other projects, CEO John Wallington said yesterday.
CoAL has seen its cash reserves dwindle to A23m ($22,6m) by the end of December last year from A$101m at the end of June last year and the group has put in strict cash control measures to rein in spending. Work on the new debt facilities are about 98% complete and are awaiting final signatures, Mr Wallington said.
"If it’s a rollover (of the $20m debt) or replacing it with another facility, one of them will happen. It’s in place. With that facility in place it will also soothe the unfortunate market fears that this company will have to go back to the market to keep the wheels rolling, which it won’t have to do," he said.
A combination of cost controls, revenue increases from rising coal prices, and the new debt facility will enable CoAL to continue "without any issues for the rest of the year", he said.
CoAL would consider an equity issue only as one of a number of fund-raising mechanisms to raise more than $500m to build its Makhado coking coal project in Limpopo, he said. The hurdles that need to be cleared first are securing mining rights and completing a definitive feasibility study after the testing of 4400 tons of coal at ArcelorMittal’s Vanderbijl park steel mill.
The new debt package will be more than $20m, Mr Wallington said. "We want to give ourselves the headroom to cater for bringing Vele back into production. That will need cash for two or three months until the coal revenues start flowing.
"We also need cash to continue exploration and complete the Makhado feasibility," he said.
CoAL has spent about R600m on Vele, a coking coal mine near the Mapungubwe national heritage site, but the mine was stopped in its tracks just months before commissioning. It received a compliance notice from the Department of Environmental Affairs in August last year.
CoAL had adhered to all the requirements in the notice as well as all legislative matters, Mr Wallington said. The mine could resume "imminently", he said, without being drawn on any more specific time line.
"There is a campaign for the government to have a clearer policy about mining and industrial development in areas that are considered environmentally sensitive. Vele has become a test case for that," he said.
CoAL needs to spend R80m more to complete the mine, which will produce up to a million tons a year of soft to medium-hard coking coal suitable for steel mills. It may produce only half that to start with because it has been unable to secure agreements with Transnet on rail allocation, he said.
CoAL has seen its cash reserves dwindle to A23m ($22,6m) by the end of December last year from A$101m at the end of June last year and the group has put in strict cash control measures to rein in spending. Work on the new debt facilities are about 98% complete and are awaiting final signatures, Mr Wallington said.
"If it’s a rollover (of the $20m debt) or replacing it with another facility, one of them will happen. It’s in place. With that facility in place it will also soothe the unfortunate market fears that this company will have to go back to the market to keep the wheels rolling, which it won’t have to do," he said.
A combination of cost controls, revenue increases from rising coal prices, and the new debt facility will enable CoAL to continue "without any issues for the rest of the year", he said.
CoAL would consider an equity issue only as one of a number of fund-raising mechanisms to raise more than $500m to build its Makhado coking coal project in Limpopo, he said. The hurdles that need to be cleared first are securing mining rights and completing a definitive feasibility study after the testing of 4400 tons of coal at ArcelorMittal’s Vanderbijl park steel mill.
The new debt package will be more than $20m, Mr Wallington said. "We want to give ourselves the headroom to cater for bringing Vele back into production. That will need cash for two or three months until the coal revenues start flowing.
"We also need cash to continue exploration and complete the Makhado feasibility," he said.
CoAL has spent about R600m on Vele, a coking coal mine near the Mapungubwe national heritage site, but the mine was stopped in its tracks just months before commissioning. It received a compliance notice from the Department of Environmental Affairs in August last year.
CoAL had adhered to all the requirements in the notice as well as all legislative matters, Mr Wallington said. The mine could resume "imminently", he said, without being drawn on any more specific time line.
"There is a campaign for the government to have a clearer policy about mining and industrial development in areas that are considered environmentally sensitive. Vele has become a test case for that," he said.
CoAL needs to spend R80m more to complete the mine, which will produce up to a million tons a year of soft to medium-hard coking coal suitable for steel mills. It may produce only half that to start with because it has been unable to secure agreements with Transnet on rail allocation, he said.
Thursday, March 3, 2011
Coal of Africa says NOMR application has been accepted
Thursday, 03 Mar 2011
Coal of Africa said that it will begin the rigorous process to get the final granting of a new order mining right for the Makhado coking coal project.
The company revealed that it has now received an acceptance letter from South Africa's department of mineral resources, following its NOMR application in January 2011. The application must now be processed before the NOMR can be granted. On AIM the shares gained around 5% in opening deals, rising to 96.75 pence a share.
CZA highlighted that it is currently working on extensive economic, social and environmental impact studies as part of a detailed Environmental Management Program.
It expects to start work on the Makhado project's detailed design phase once the definitive feasibility study has been finalized and approved slated for the June quarter.
Makhado is one of the company’s four main assets alongside the Woestalleen Colliery, the Mooiplaats thermal coal mine and the Vele coking coal project. The coking coal project is located in Soutpansberg, 60 kilometers from Musina in the Limpopo Province, close to Rio Tinto's Chapudi project and covers an area of more than 23,000 hectares. It is expected to start production in 2013.(sourced :proactiveinvestors.co.uk)
Tags :Vale coking coal project, Rio Tinto's Chapudi project, Mooiplaats thermal coal mine
The company revealed that it has now received an acceptance letter from South Africa's department of mineral resources, following its NOMR application in January 2011. The application must now be processed before the NOMR can be granted. On AIM the shares gained around 5% in opening deals, rising to 96.75 pence a share.
CZA highlighted that it is currently working on extensive economic, social and environmental impact studies as part of a detailed Environmental Management Program.
It expects to start work on the Makhado project's detailed design phase once the definitive feasibility study has been finalized and approved slated for the June quarter.
Makhado is one of the company’s four main assets alongside the Woestalleen Colliery, the Mooiplaats thermal coal mine and the Vele coking coal project. The coking coal project is located in Soutpansberg, 60 kilometers from Musina in the Limpopo Province, close to Rio Tinto's Chapudi project and covers an area of more than 23,000 hectares. It is expected to start production in 2013.(sourced :proactiveinvestors.co.uk)
Tags :Vale coking coal project, Rio Tinto's Chapudi project, Mooiplaats thermal coal mine
Thursday, February 24, 2011
Coal of Africa inadvertently fallen into the gap between SA’s mining legislation & environmental laws
Thursday, 24 Feb 2011By Charlotte Mathews
Case study: Vele coal mine
Coal of Africa, an Australia-listed coal mining company with a secondary listing on the JSE, has inadvertently fallen into the gap between SA’s mining legislation and environmental laws. It is proving to be a costly affair.
The company applied for a mining licence for its Vele coking coal mine in Limpopo two years ago, which it received last March after preparatory site work had already been done. Coking coal, used in making metals like steel and ferrochrome, is uncommon in SA and fetches premium prices.
However, the mine is in the vicinity of Mapungubwe, a site of considerable archaeological and cultural significance. It is also within the buffer area for the proposed Transfrontier Conservation Area, which plans to combine conservation properties within SA, Zimbabwe and Botswana. Though it is not actually within either of these declared areas, concerned groups fear that the visibility, effluents and logistics of an open-cast coal mine will severely affect the sensitive sites, and they have raised strong protests.
Work on the mine was suspended late last year, with R525m already spent, while Coal of Africa addressed concerns raised by Mpumalanga’s department of environmental affairs.
The Save Mapungubwe Coalition, which includes environmental, tourism and heritage groups, has applied for an interdict to stop work on the mine altogether.
Coal of Africa says it is committed to complying with current and any future legislation. By end-January it had submitted the necessary rectification papers under the National Environmental Management Act and had also hosted Unesco representatives and senior officials from the departments of mineral resources and environmental affairs .
Once it receives the go-ahead, it will take another three months to complete the mine.
First production of coking coal will follow shortly afterwards, it says.
Amid the controversy, Coal of Africa’s share price plunged from R17,60 on the JSE last April to a low of R7,69 in November. It has since recovered to around R10,50 — a level that will inhibit its ability to raise equity capital to develop other mines in SA.
Tags:steel mills, ferrochrome, raw material,Vele coking coal mine, Limpopo,open cast coal mine, strong protests, The Save Mapungubwe Coalition, interdict to stop work
Tuesday, January 25, 2011
CoAL project ‘less controversial’
Coal of Africa lodge mining right application at its Makhado coking coal project.
ALLAN SECCOMBE Published: 25 Janurary, 2011
COAL of Africa (CoAL) has lodged a mining right application for its Makhado coking coal project, which could supply ArcelorMittal SA with a vital ingredient for making steel, CEO John Wallington said yesterday.
CoAL has run into headwinds from environmentalists at its Vele project on the edge of the Mapungubwe World Heritage Site, which could be part of a large transfrontier park with Zimbabwe and Botswana.
Mr Wallington said much more detailed work was being done at Makhado than at Vele, both of which are in Limpopo. While Makhado is near game reserves, it should not attract as much opposition as Vele has, Mr Wallington said.
The Department of Mineral Resources could take a year to process the mining right application. CoAL is also working with the Department of Environmental Affairs to avoid a repetition of problems at its Mooiplaats mine in Mpumalanga where it ran foul of overlapping regulations between the two departments.
CoAL has consulted interested and affected parties around its Makhado project, which is contiguous to coal properties it bought from Rio Tinto, Mr Wallington said.
"Once the application is accepted by the department, extensive economic, social and environmental impact studies will be prepared as part of the process in formulating an extensive environmental management programme," he said.
Floods in Australia’s coal state, Queensland, and disruptions to the world’s leading supplier of coal would make the diversity offered by CoAL’s Makhado project a boon for shareholders and the province, he said. Source: www.businessday.co.za
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