Coal of Africa's COO, Michiel Brönn, has been fined for insider trading after he had been instructed by the company’s CEO not to trade shares.Coal of Africa's COO Michiel Brönn purchased 117 000 company shares knowing the Department of Mineral Resources had approved an application for Coal of Africa’s Makhado project according to the Financial Services Board (FSB).
Three days after purchasing the shares, an announcement regarding the Makhado project was published resulting in Coal of Africa’s share price to rise to a record high.
In an official statement triple-listed coal company Coal of Africa notes the judgement and fine lodged by the FSB against Brönn for the contravention of Section 78 (1) (a) of the Financial Markets Act, 19 of 2012.
Coal of Africa reports it has ensured that all internal policies and governance processes were in place. The company is in the process of reviewing the FSB findings, the details of which were made public earlier this week. Brönn has been suspended while the company completes its internal review process.
Brönn has been ordered by the FSB to pay the investigation costs of his case in addition to the penalty.
The Makhado project in the Soutpansberg Coalfield, 36 km north of Makhado town on the N1 or 65 km southwest of Musina and 80 km southeast of Vele, Limpopo Province, is Coal of Africa’s most advanced feasibility-stage project. The resource will initially be mined on an opencast basis over 16 years with the potential for further expansion into underground.
Department of Environmental Affairs Minister Edna Molewa recently dismissed an appeal against the environmental authorisation amendment for Coal of Africa's Makhado project.
Makhado’s 26-month construction phase is expected to start in the first half of 2017, as soon as all regulatory approvals are in place, with a further four month ramp-up phase resulting in the production of 5.5 Mtpa of saleable product.
Featured image credit: Coal of Africa