HomeEnergy MineralsCoAL buys balance of Vele project

CoAL buys balance of Vele project

CoAL chief geologist
Charles Mafiri showing
the wide-diameter
cores stored in a
container at the Vele
Johannesburg, South Africa — MININGREVIEW.COM — 14 July 2009 – Emerging coal development and production company Coal of Africa Limited (CoAL) – listed on the AIM, the Australian Securities Exchange and the JSE – has agreed to buy the remaining 26% of the Vele coking coal project in South Africa.

The company already holds 74% of Limpopo Coal Company, which owns the Vele project.

In a statement issued here, CoAL revealed that it had agreed to buy a 20% stake from Tranter Holdings by issuing 5.625 million of its shares, and 6% from Shangoni Bezwe Management Services for 1.99 million shares.

“Completion of both transactions will take CoAL’s interest in the Vele Project to 100 percent,” it added.

The Vele project “’ which will sell coal to the South African unit of steel producer ArcelorMittal “’ is being developed in two phases, the first of which will cost around R350 million, the company revealed in an update yesterday.

The first phase “’ which will produce around 1 million tonnes per year “’ is due to be launched as soon as approval is granted by the mining ministry. This is expected by the end of the third quarter of 2009.