Two water licence renewals for CoAL’s Vele coal mine and Makhado project

Coal of Africa Ltd (CoAL), an emerging coal exploration, development and mining company operating in South Africa, received a further 20 yr renewal of the Integrated Water Use Licence (IWUL) for its Vele coal mine, the Limpopo Province, South Africa.

The IWUL for the Vele coal mine has been amended in line with the requirements for its plant modification project (PMP). During 2H15, the company commenced a process to obtain approval relating to a non-perennial stream diversion. This decision is anticipated in 2H16. Once this regulatory approval in respect of the coal mine has been received, the final decision to proceed with the PMP will be placed before the board, which will include an assessment of forecast global coal prices.

Commenting on the announcement, David Brown, CEO of Coal of Africa said: “We welcome this decision by the Department of Water and Sanitation as a confirmation of the progress made in the implementation of the co-existence model implemented at Vele Colliery, which seeks cooperation between mining, agriculture and heritage land uses. We continue to assess opportunities to bring the Vele mine back into production”.

Additionally, the company was awarded a IWUL for its Makhado project, in the Limpopo Province, has been by the Department of Water and Sanitation and this will also last for a period of 20 yr.

In 2013, CoAL completed a Class II Definitive Feasibility Study on the Makhado project and anticipates developing the colliery to produce 2.3 million tpy of hard coking coal and a further 3.2 million tpy of thermal coal over the life of mine. According to the company, tests confirmed that the coal can be successfully beneficiated to produce high-strength coke for the steel manufacturing industry.

David Brown commented, “The granting of the IWUL for the Makhado project is a significant milestone for CoAL, and is a further step towards bringing the Makhado project into production. It further signifies government’s commitment to and support of our flagship project, and its potential to foster socio economic transformation not only for the communities in our area of operation, but also for the Limpopo Province. We continue to focus on our funding requirements in order to commence construction activities in 2H16.”

Edited from press release by Harleigh Hobbs

Read the article online at: https://www.worldcoal.com/coal/14012016/two-water-licence-renewals-for-coals-vele-coal-mine-and-makhado-project-47/