The five-point turnaround strategy of Coal of Africa (CoAL) regarding the sale of its noncore thermal coal assets is progressing well.
The ASX-, AIM- and JSE-listed company has attained the strategic investor Beijing Haohua Energy Resource, completed in February 2013. CoAL has also reported a 30% reduction in its overhead structure, completed in July 2013. Coal quality tests were completed in August 2013, confirming the product quality at Vele, and the board approved necessary plant modifications.
CoAL’s goals for 2014 include a thermal assets restructure for all assets identified by June 2014. The company also intends to secure funding for Makhado and obtain regulatory approvals by the end of the third quarter of the same year.
As part of the turnaround strategy regarding thermal assets restructure, CoAL has identified five non-core thermal assets c Woestalleen Colliery, Opgoedenhoop, Lemur, Holfontein and Mooiplaats Colliery – for which the Company has been engaged in a sales process.