[miningmx.com] – Coal of Africa (CoAL), the SA and UK listed coal
producer and exploration firm, said the South African government had given its
blessing to the purchase of the Chapudi coal prospect.
CoAL offered to buy the property, which is situated in the Limpopo province where
CoAL already owns significant coking coal resources, from Rio Tinto last year for a
consideration of $75m.
The support of the South African government was required in terms of legislation
requiring approval for change of control of assets.
“The transaction provides significant scale and optionality in the planning of future
mining projects, and will enable the consolidation of several contiguous tenements in
the Soutpansberg coalfield,” said John Wallington, CEO of CoAL.
“The detailed planning and technical work required as part of this process has
commenced with our partners, while the reserve and resource calculations of these
newly-acquired coal assets are being evaluated and a further update will be issued to
the market in due course,’ Wallington added.
