CoAL expects 1st sales from Vele in next quarter

[] — Coal of Africa said on Wednesday that development of the Vele Project has progressed according to schedule and first sales of coking coal are expected during the next quarter.

Production is expected to commence during the next quarter followed soon thereafter by first sales of coal, pending the grant of an integrated water use licence (IWUL). CoAL is still awaiting approval of its application for an IWUL which was submitted to the Department of Water Affairs in November 2009. It remains confident that the licence should be received in the near term. The IWUL is required prior to undertaking certain mining activities on the Vele Project.

Releasing the company’s operational report for the quarter ended June 2010, Executive Deputy Chairperson Simon Farrell said: “Despite railing problems during the quarter due to strike action at Transnet Freight Rail, the company serviced its coal sales contracts from stockpiles at site and at the Matola port in Maputo, Mozambique.”

Other highlights from the quarter included the attainment of 1 000 fatality free production shifts at Zonnebloem open cast mine and the appointment of John Wallington as CEO.