CoAL completed a Class II Definitive Feasibility Study on the Makhado Project during 2013 and anticipates developing the colliery to produce 2.3 million tonnes per annum of hard coking coal and a further 3.2Mtpa of thermal coal over the life of mine.

Tests confirmed that the coal can be successfully beneficiated to produce high strength coke for the steel manufacturing industry.

CoAL CEO David Brown said: “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 H2 2016.”