Vele gains rights

THE Vele coking coal project has received mining rights from the South African government, allowing Coal of Africa to move ahead with the development of the mine.
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Courtesy Coal of Africa.

Angie Tomlinson

The South African Department of Mineral Resources granted Coal of Africa an unconditional new order mining right for Vele.

Coal of Africa currently holds an 80% interest in the project and has an agreement in place to acquire the remaining 20%.

Vele, in the Limpopo Province, will initially target 2.5 million tonnes per annum before doubling output under a second development phase.

The company anticipates the wash plant and associated infrastructure at Vele will be commissioned by April this year.

“This is one of the biggest milestones in the company’s history and allows us to proceed toward development of our Vele coking coal project immediately upon execution of the mining licence,” Coal of Africa managing director Simon Farrell said.

The South African government also awarded the company a conditional new order mining right for the Holfontein coal project.

Coal of Africa expects to execute both rights by the end of this month.

The company’s shares jumped 16.06% on the news this morning to $A2.53.

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