JOHANNESBURG (miningweekly.com) – Coal of Africa Limited (CoAL) is still planning for construction at its Makhado coking coal project, in Limpopo, to start in the second half of this year.
This was despite a 2014 interim court interdict, which sought to halt any mining or construction activity. The matter was heard in December and CoAL noted that it did not expect the process to affect Makhado’s construction timetable.
The mine would produce 5.5-million tonnes a year of saleable product once in production.
CEO David Brown noted that the recent signing of a nonbinding memorandum of understanding with Qingdao Hengshun Zhongsheng Group regarding a potential equity investment in CoAL subsidiary Baobab Mining and Exploration, was an “important milestone” in finding an investor for Makhado.
Hengshun had started due diligence on the Makhado project.
Meanwhile, CoAL on Thursday also said it expected to obtain approval relating to a nonperennial stream diversion at its Vele colliery in the second half of the year.
“Once this regulatory approval in respect of the colliery has been received, the final decision to proceed with the plant modification project will be placed before the board, which will include an assessment of forecast global coal prices,” the company said in a statement.
Brown added that regulatory progress and project development achievements during the last quarter reiterated CoAL’s commitment to delivering its short to medium-term strategy.
Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
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