The triple-listed company has officially submitted both its environmental impact assessment and management plan to South Africa’s Department of Mines and Energy for the upcoming open cut operation.
Outside of mine development costs, Coal of Africa will spend more than 18 million Rand ($US2.16 million) per annum on various environmental programs.
Another R160 million ($US19.24 million) has been slated for infrastructure and skills development for the first five years, along with community services.
“The macro-economic impacts emanating from the proposed mine will be significant: it has the potential to create over 28,000 direct and indirect jobs which, in the context of one of the poorer provinces in South Africa, is a critical consideration,” Coal of Africa chief operating officer Riaan van der Merwe said.
“The potential exports generated from the mine, together with the possible reduction in the need for South African companies to import coking coal, will also have a substantial affect on South Africa’s balance of payments.”
Coal of Africa’s 74%-owned Vele project has a coal resource of 721 million tonnes.
Mining is expected to start in the last quarter of 2009 at an annualised rate of 1-1.5Mt, before ramping up to 5Mt per annum.
Shares in Coal of Africa are up A3c to $1.50 on the Australian Securities Exchange.