Johannesburg, South Africa — 18 June 2012 – Coal of Africa Limited and Exxaro Coal have agreed to extend the deadline by which Exxaro had to commit to involvement in the Makhado project. Exxaro now has until 30 September 2012 to decide whether it wants to exercise its right to a 30% participation in Makhado.
A company statement issued here said this provided it more time to conduct further studies, post the recent regional resource upgrades (following the Chapudi acquisition) and the recent draft definitive feasibility study (DFS).
The delay can be seen as a positive, in that Exxaro is maintaining its involvement and both parties will now work jointly in completing the remaining work that is seen to be required in completing the DFS. This includes further technical work on the thermal coal potential, test work on the coking and thermal coal yield assumptions and a review of the optionality of incorporating the other nearby coal assets after the recent Greater Soutspansberg Project (GSP) resource upgrade.
In addition, the parties intend progressing off-take discussions with ArcelorMittal and finalising a definitive shareholders agreement, should Exxaro decide to proceed.
Source: Coal of Africa Limited. For more information, click here.