AIM,ASX and JSE listed coal mining and development company Coal of Africa (CoAL, CZA) advised Monday that it has lodged a New Order Mining Right (NOMR) application with the South African Department of Mineral Resources (DMR) in Limpopo Province for its Makhado Coking Coal Project.
In preparing the NOMR application, the company completed baseline social and environmental studies, which were conducted by a group of specialist independent consultants.
Consultation with interested and affected parties is underway, which includes the formation of the Makhado Project Community Engagement Forum to facilitate consultation with the communities and land claimants affected by the Makhado Project.
Once the NOMR application is accepted by the DMR, extensive economic, social and environmental impact studies will be prepared as part of the process in formulating an extensive Environmental Management Programme.
The Mineral and Petroleum Resources Development Act and National Environmental Management Act processes will be run in parallel during the next phase to ensure all relevant approvals are obtained.
John Wallington, CoAL's CEO said the application is a significant step in the process of meeting all regulatory requirements to enable the establishment of the coking coal mine at Makhado.
CoAL also announced that on 20 January 2011, the various New Order Prospecting Rights resulting from the previously agreed Farm Swap with Rio Tinto were executed, representing the final administrative process to complete the transaction.
As previously announced, the company received approval from the DMR for the extraction of a bulk sample from the Makhado Project. The sampling involves the extraction of 19,100 tonnes of run of mine coal, to be transported to Tshikondeni Colliery, owned by Exxaro Resources, for beneficiation to produce approximately 4,400 tonnes of coking coal. The intention is to have the full sample extracted and transported to Tshikondeni for processing by mid March 2011.
The sample will be tested by ArcelorMittal SA at Vanderbijlpark, which will facilitate the finalisation of specific terms and conditions relating to the proposed off-take agreement between CoAL and ArcelorMittal.
CoAL has largely completed the DFS for the Makhado Project and is currently undergoing a “peer review” process which is expected to be completed in the first quarter of 2011. The intention thereafter is to commence with the detailed design phase of the project, pending approval of the NOMR.
CoAL's other key projects include the Woestalleen Colliery, the Mooiplaats thermal coal mine and the Vele coking coal project. - I-Net Bridge