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Coal of Africa Ltd progresses Makhado project

World Coal,

NOMR application lodged

Coal of Africa Ltd (CoAL) has announced that it has lodged a new order mining right (NOMR) application with the Department of Mineral Resources (DMR) in the Limpopo Province of South Africa for its Makhado coking coal project.

In preparing the NOMR application, CoAL completed baseline social and environmental studies, which were conducted by a group of specialist independent consultants. Consultation with interested and affected parties (IAP) is underway, which includes the formation of the Makhado Project Community Engagement Forum to facilitate consultation with the communities and land claimants affected by the Makhado Project. Once the NOMR application is accepted by the DMR, extensive economic, social and environmental impact studies will be prepared as part of the process in formulating an extensive environmental management programme (EMP). The Mineral and Petroleum Resources Development Act (MPRDA) and National Environmental Management Act (NEMA) processes will be run in parallel during the next phase to ensure all relevant approvals are obtained.

John Wallington, CoAL’s CEO, commented: “This application is a significant step in the process of meeting all regulatory requirements to enable the establishment of the coking coal mine at Makhado." 

NOPRs executed to effect the Rio Tinto Farm

CoAL is also pleased to announce that on 20 January 2011, the various new order prospecting rights resulting from the previously agreed Farm Swap with Rio Tinto were executed, representing the final administrative process to complete the transaction.

Makhado project bulk sample update

As previously announced, CoAL received approval from the DMR for the extraction of a bulk sample from the Makhado Project. The sampling involves the extraction of 19 100 t of ROM coal, to be transported to Tshikondeni Colliery, owned by Exxaro Resources Ltd, for beneficiation to produce about 4400 t of coking coal. The intention is to have the full sample extracted and transported to Tshikondeni for processing by mid-March 2011.

The sample will be tested by ArcelorMittal SA at Vanderbijlpark, which will facilitate the finalisation of specific terms and conditions relating to the proposed off-take agreement between CoAL and ArcelorMittal SA.

Makhado definitive feasibility study (DFS)

CoAL has largely completed the DFS for the Makhado Project and is currently undergoing a peer review process which is expected to be completed in the first quarter of 2011.  The intention thereafter is to commence with the detailed design phase of the project, pending approval of the above mentioned NOMR.

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