RSS UpdatesCompany Information for CoAL of Africa Ltd
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Company Statement
Coal of Africa Limited (’Coal’), formerly GVM Metals Ltd, is primarily focused on the acquisition, exploration and development of thermal and metallurgical coal projects in South Africa. The Company was incorporated in Western Australia and listed in 1980. Since 2005, the Company has also listed on both the AIM and JSE markets, allowing further growth in the Company’s coal assets.
CoAL’s metals processing company, Nimag Group of Companies ("Nimag Group") is made up of three companies engaged principally in the manufacture and distribution of nickel magnesium alloys, ferro-silicon magnesium alloys and metal fibres.
The Company acquired a controlling interest in Nimag Group in December 2003, and having now satisfied the Option Agreement, has acquired the remaining 24%.
South African coals are remarkably undisturbed, horizontal and shallow, accounting for much of their commercial success. The coals also differ compositionally from coals elsewhere in the world. Most South African coals, whilst very good as thermal coals, tend not to display the plasticity under heat required of coking coals. With some exceptions, only the coals in the Limpopo region of South Africa make coking coal quality after suitable processing.
Current Operations
Mooiplaats
The Mooiplaats coal project in which CoAL has a 100% interest is situated in the Ermelo coal fields 1.7km from the recently re-commissioned Camden Power Station.
Development of the underground single seam thermal coal operation using the first continuous miner , resulting in the extraction of the first coal was on 20 October 2008.The second Continuous Miner was handed over on 24 November 2008.
Mooiplaats which involves capital expenditure of R1billion will take approximately 18 months to ramp up to its full production of 3Mtpa of coal and 0.5Mtpa of middlings.
Successful negotiations were concluded with a local coal producer to obtain interim access to rail loading facilities at UMlabo siding whilst the Overvaal siding is being re-commissioned. The colliery sccessfully railed its first load of ’lean’ coal on the 11th of September 2009 to Matola and will continue to transport product to the port to fully utilise the 80000 tonne stockpile facility. Although the mine is currently mining the lower grade ’lean’ coal the target is to intercept and mine the high quality bituminous coal by Q1 2010.Life of mine has been estimated at 20 years.
Vele
The Vele coking coal project is located in the Limpopo Province. CoAL will develop Vele in two phases, with phase one commencing in the second half of 2009 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, likely to be delivered to ArcelorMittal for use at it steelworks in Vanderbijl Park. Phase 2 will produce the planned full capacity of 5 million tonnes of coking coal per annum.
Capital expenditure on the Vele project to produce 5mtpa will be approximately R3 billion. 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. In terms of logisitics, the coal will be transported from the mine to the railhead by truck at first until necessary rail links have been completed. It will take 18 months to complete the rail spurs and loading facilities, which involves aout 40km from Vele and 25km from Makhado.
Makhado
The Makhado coal project which CoAL has a 100% interest in is situated north of Soutpansberg, 60km from Musina in the Limpopo Province close to Rio Tinto’s Chapudi Project. During 2008, aeromagnetic surveying at the project was completed with in-depth geophysical modelling has been completed. The Makhado project covers an area of more than 23,000 hectares in the Mopane/Soutspansberg coalfield.
CoAL entered into a joint venture deal with Rio Tinto Coal companies in the Limpopo Province. The Rio associates, Kwezi Mining, Chapudi Coal and CoAL signed a memorandum of understanding which involved a joint venture and farm swap agreement. The rationalisation of the Chapudi and CoAL farms provides a significant benefit to both companies in terms of bringing the collective properties into commercial production.
Holfontein
Holfontein is located near the middle of Sasol’s Secunda coal production area. It has remained undeveloped due to interpreted geological complexity and partly because of fragmented ownership.
Two coal seams at Holfontein are commercial targets: Number 4 Lower Coal Seam; and the shallower Number 5 Coal Seam. The low vitrinite, moderate to high ash coal of Number 4 Coal Seam currently mined in the district, is sold raw coal to Eskom for its coal fired power stations or is used by Sasol in its synthetic fuels plants at Secunda. Number 5 Seam contains high value coal in narrower seam widths and is typically found in two horizons of bright coal, 80cm and 30cm thick. As part of the bankable feasibility it is planned to test the feasibility of mining the two horizons together with the parting and washing the run of mine ore at surface level. The most likely market for the 5 Seam coal is the export market through the Grindrod Richard’s Bay Navitrade Terminal.
Geographical Spread
South Africa
Board of Directors and Key Management
| BOARD | |
| Richard J Linnell | Chairman |
| Simon J Farrell | Managing Director |
| Blair Sergeant | Finance Director |
| Professor Alfred Nevhutanda | Executive Director |
| Steve Bywater | Non-Executive Director |
| Peter Cordin | Non-Executive Director |
| Hendrik Verster | Non-Executive Director |
| MANAGEMENT | |
| Riaan van der Merwe | Chief Operating Officer |
Company AddressLevel 1
|
Additional Address/Key ContactCompany Secretary; Shannon Coates |
CapitalOrdinary Shares - 474,538,913 |
Year End30 June |
Nominated BrokersMirabaud |
Major Shareholders
| Shareholder | No of Shares | % | |
| 1 | ARCELORMITTAL SOUTH AFRICA LTD | 76,808,846 | 16.19 |
| 2 | NORTRUST NOMINEES LIMITED | 45,500,000 | 9.59 |
| 3 | HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA | 37,717,807 | 7.95 |
| 4 | L P AFRICAN GLOBAL CAPITAL I | 33,810,512 | 7.13 |
| 5 | NUTRACO NOMINEES LIMITED | 23,631,028 | 4.98 |
| 6 | GREENWOOD NOMINEES LIMITED | 20,300,000 | 4.28 |
| 7 | ZERO NOMINEES PTY LTD | 9,982,101 | 2.10 |
| 8 | EUROCLEAR NOMINEES LIMITED | 8,962,042 | 1.89 |
| 9 | VIDACOS NOMINEES LIMITED | 8,864,382 | 1.87 |
| 10 | J P MORGAN NOMINEES AUSTRALIA LIMITED | 8,754,551 | 1.85 |
Related News
17/02/10 - Coal of Africa Gets Its Assets In Order For The Next Major Advance01/12/09 - Coal of Africa: A Chip Off The Old Block?
01/10/09 - Coal of Africa Has News Flow Galore
21/07/09 - Coal of Africa Begins To Build Scale In South Africa, And Could Now Be A Ten Million Tonne Producer Within Three Years
19/02/09 - Debt-Free Coal Of Africa Gets Ready To Start Banking Some Serious Money
06/03/08 - Coal of Africa Has The Wind In Its Sails
Most Recent Statement
16/03/10 - Half Yearly Report11/03/10 - COAL RECEIVES APPROVAL TO TAKE BULK SAMPLE FROM MAKHADO PROJECT
02/02/10 - Award of new order mining rights
29/01/10 - Quarterly Activities and Cashflow Report
26/01/10 - Completion of NuCoal Acquisition
29/10/09 - CoAL Formalises Rio Farm Swap Agreement