Johannesburg - Junior coal producer Coal of Africa (CoAL) said on Monday that it had received approval to transfer its Makhado Project in Limpopo to a subsidiary.
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The Department of Mineral Resources and the Limpopo Department of Economic Development, Environment and Tourism had granted CoAL environmental authorisation in 2013. However, this required that activities start within three years.
Extension
In the announcement to shareholders yesterday, the company said it had received approval for the transfer of the project to its subsidiary, Baobab Mining and Exploration, which was Makhado’s legal operating entity.
In addition, the triple-listed company was also granted an extension as to when it should start operations for an additional five years.
The statement, under chief executive David Brown’s name, said the decision by both departments was “a confirmation of the government’s commitment to drive socio-economic development, not only in our area of operation, but also the broader Limpopo Province”.
He added that it continued to engage with the Department of Water and Sanitation over processing its appeal against the Water Use Licence for the Makhado Project.
CoAL shares gained 4.35 percent yesterday to 72c.
BUSINESS REPORT