[miningmx.com] — Mining company Coal of Africa announced on Monday that the integrated water use licence for the company’s Vele Colliery has been granted by the department of water affairs. The Vele coking coal project is located in the Limpopo Province.
The application was lodged on November 1 2009, and CoAL has since been in constant interaction with government officials in order to progress its approval.
CoAL has undergone an intensive application process, including public participation meetings, to meet all legislative requirements.
John Wallington, CoAL’s CEO said the company welcomed the decision to grant the licence.
“The company is acutely aware of the sensitivity of the area and the significant responsibilities the approval brings,” he said.
As previously announced, the rectification process relating to the compliance notice issued with respect to the Vele Colliery continues and any development in this regard will be announced in due course.
CoAL was granted an unconditional New Order Mining Right in February 2010 and will develop Vele in two phases. Phase one is set to commence in the first quarter of 2010 which will initially comprise the establishment of a modular coal treatment plant, and have the ability to deliver in the order of 1 million saleable tonnes (yield dependant) of coking coal per annum. Phase 2 will produce 5 million tonnes of coking coal per annum depending on prevailing market conditions.
Capital expenditure on the Vele project to produce 5mtpa will be approximately R3bn.
CoAL is fully funded to develop Vele into a mine producing annual output of 1mtpa, and as with Makhado the bulk of the remaining expenditure is anticipated to be financed through cash-flow and contractor supplied mining equipment.
