The Vele secondary
wash plant “’ production
here has been suspended
 
Johannesburg, South Africa — 28 February 2013 – Junior coal mining company Coal of Africa (CoAL) has declared force majeure on coal shipments from its collieries in South Africa as a result of a derailment on the rail corridor linking with the Maputo port in Mozambique.

In a statement issued here, CoAL said South African logistics group Transnet had advised the company that as a result of a derailment of 10 wagons on the Maputo rail corridor on 18 February 2013, all rail traffic between Komatipoort and Maputo had been suspended for at least seven weeks. Transnet Freight Rail had attempted to establish alternative routes to Matola which to date had unfortunately been unsuccessful.

The company said it had temporarily suspended production at its Vele colliery where stocks are at full capacity, while output at its Mooiplaats and Woestalleen operations would continue until stockpile capacity was exhausted.

“Accordingly, the company advises that its subsidiaries Limpopo Coal Company (Pty) Limited (the holding company for the Vele Colliery), Langcarel (Pty) Limited (the holding company for Mooiplaats) and NuCoal Mining (Pty) Limited (the holding company for Woestalleen) have issued force majeure notices to their customers, contractors and other affected stakeholders,” the statement added.

“The company will implement measures at all operations to mitigate the commercial and operational impact of this force majeure,” it added. “Production at Mooiplaats and Woestalleen will continue until stockpile capacity is exhausted. The existing stockpiles at Vele are at full capacity and have resulted in the temporary suspension of production,” the statement continued.

Vele Colliery’s essential services will continue and a buffer contingency plan has been initiated to enable production to restart within 24 hours once TFR resumes operations on the Matola corridor.

Coal of Africa will continue to provide updates on material developments as they occur.

Source: Coal of Africa Limited. For more information, click here.