Johannesburg, South Africa — MININGREVIEW.COM — 23 March 2010 – Emerging South African miner Coal of Africa Limited says it has received a government licence to start production at its Vele coking coal project, and that it will begin development immediately.
In a statement issued here, the company “’ which sees production beginning in the third quarter of 2010 “’ said it would develop the project in two phases. “The company looks forward to developing Vele at a time when coking coal prices are being settled around $200 per tonne “’ 55% higher than 2009/10 prices,” managing director Simon Farrell declared.
Coal of Africa expects to reach its annualised production target rate of 1 million saleable tonnes of coking coal from the first phase by the end of 2010.
“Development of the second phase will depend on market conditions,” it said. The company, which raised its budget for the first phase by 29% to R450, explained that it was still in supply negotiations with steel maker ArcelorMittal.