We’ll be alone at Mapungubwe, says CoAL

[miningmx.com] — COAL of Africa (CoAL) CEO John Wallington says he
doubts whether any other new mining development will be permitted in the region
around the Mapungubwe National Park, a world heritage site and the location of the
company’s Vele colliery.

Vele, primarily a coking coal resource, used to be the focal point of environmentalists’
resistance to mining in the sensitive area, and to the rampant disregard for
environmental good practice in the emerging coal sector at large.

Lobby groups had succeeded in delaying Vele’s development for CoAL’s failure to
obtain a valid water-use licence and falling foul of the National Environmental
Management Act (Nema). The colliery made its first delivery in April after development
was allowed to recommence in October 2011.

CoAL is still locked in discussions with a coalition of lobby groups, the Save
Mapungubwe Coalition, over strategies on how the environmental impact of mining in
the area can be kept to the minimum.

Its activities was also the subject of an unfavourable report from the United Nations
Educational‚ Scientific and Cultural Organisation (Unesco).

“I don’t think there’s going to be any other mining happening in that area, or very
little,’ Wallington said in a recent interview with Miningmx. “There is still a
discussion among [government] departments and Unesco over what the correct buffer
zone [around Mapungubwe] should be.

“Inside that buffer zone there won’t be any mining, and outside you’ll have the same
situation as what Vele’s got.’

Anglo American Thermal Coal counts among the companies that have conducted initial
exploration work close to Mapungubwe.

Wallington on numerous occasions said Government policies have not been applied
consistently, saying Vele’s had the same permitting, prior to its temporary closure, as
the majority of other mines in South Africa.

“There hasn’t been a level playing field and [the law is] not equally applied, but this
mine is in a different position than 90% of the other mines in the country,’ Wallington
said. “It was always going to have a different profile than a typical coal mine in
Witbank and a typical platinum mine in the platinum belt.’

He also admitted he probably wouldn’t have accepted the position of CoAL’s CEO mid-
2010 if he knew the extent of the drama that was to unfold at Vele.

“I shouldn’t say this but I’ll say it anyway, I probably wouldn’t have taken the job in
the first place,’ he said. “The first nine months was just a nightmare. To some extent
it was easier because I wasn’t part of the creation [of the problem], but I became part
of it and is still part of the target.’

CoAL’s shares have in recent weeks languished close to its 52-week low, despite
progress at Vele and a significant resource update at Makhado and the neighbouring
Chapudi assets.

“A lot of it [low share price] is dominated by external factors,’ said Wallington. “Coal
prices have come down significantly, coal companies are struggling and we’re a
developing company.

“In times like these, the focus shifts away from the long term, it’s all about the short
term.’