Section 11 approval has been granted to Coal of Africa (CoAL) by the Department of Minerals Resources for the disposal of the Opgoedenhoop mineral right. The consideration for the sale is R20.4 million and the deposit of R5 million has been received by the company. The balance of the consideration will become payable within 12 months.
“The successful completion of the sale of Opgoedenhoop concludes another aspect of the five-point turnaround strategy,” said CoAL CEO David Brown.
This follows the placement of the loss making Mooiplaats Colliery on care and maintenance and the commencement of a formal sales process. The commencement of a formal sales process, as well as the disposals of the Woestalleen Complex, Holfontein project and Bushveld investment are at various stages of completion and are all expected to be completed during 2014. CoAL is also in the process of re-negotiating its take or pay port obligations and this is expected to be completed by the end of 2014.
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