Coal of Africa: Shares hit record on mining rights win

COAL of Africa increased by a record in Johannesburg trade after winning the rights to mine at a site in Limpopo province. Coal of Africa jumped as much as 68.54 percent in early trade, its biggest gain since starting to trade in the city in December 2006. The Department of Mineral Resources granted permission for Coal of Africa to mine hard coking and thermal coal at the Makhado project, the company said in a statement yesterday. It also won consent to transfer the right to its subsidiary, Baobab Mining & Exploration. The shares climbed as high as R1.50, before closing up 37.08 percent at R1.22. Coal of Africa expects to produce 2.3 million tons of hard coking coal annually and 3.2 million tons of thermal coal over Makhado’s 16-year lifespan. – Bloomberg