Vele, which Coal of Africa has a 74% interest in, holds a 721 million tonne resource.
Mining is expected to start in the third quarter of 2009 at an annualised rate of 1-1.5Mt, before ramping up to 5Mtpa.
A division of Eqstra Holdings, MCC’s current mining contracts involve excavation of more than 15Mt of ore and waste rock per month.
The surface mining contractor has a fleet of 1400 earthmoving and support equipment.
Coal of Africa was trading down 2.8% today at 86 cents mid-morning on the Australian Securities Exchange.
