Coal of Africa (CoAL) which operates in South Africa, has been granted Section 11 approval by the Department of Mineral Resources for the sale of the Woestalleen Complex for R80 million, representing the last of its non-core assets as the company progresses its turnaround strategy.
“The regulatory approvals received during the quarter resulted in the satisfying of conditions required for the disposal of the non-core Woestalleen Complex and Opgoedenhoop assets. These disposals are significant milestones in the Company’s strategic turnaround strategy and a portion of the proceeds from the sale will be used to reduce the Investec working capital facility exposure,” said CoAL CEO David Brown.
“The appointment of Sedgman to complete the Vele plant modification FEED is a critical step to ensuring the colliery’s ability to process 2.7 million tonnes of ROM coal annually. The company has also continued to engage with funders and potential customers. The FEED process is expected to be completed by the end of June 2014 and will enable CoAL to arrive at a class 1 – EPC estimate with construction due to commence during July 2014, subject to the project delivering an acceptable return which will be supported by off-take agreements.”
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