cza hopes to resume vele project this year

Coal of Africa hopes to resume Vele project this year

Johannesburg, South Africa --- MININGREVIEW.COM --- 01 November 2010

Coal of Africa Limited (CoAL) ‒ the Australian-based and listed coal development company operating in South Africa ‒ says it expects to resume work on its Vele colliery project before the end of this year, following delays due to opposition from the Department of Water and Enviromental Affairs.

The company has faced hurdles in completing the colliery ever since February this year, when the Department said it was opposed to the project because it was too close to a United Nations heritage site that was once Southern Africas biggest settlement.

Releasing results for the quarter ended 30 September 2010, CEO John Wallington said the company had faced some significant challenges in the past three months, particularly relating to the situation at Vele.

He went on to say that Vele was almost ready to roll, with the construction of the open cast pit, as well as the processing plant and related mining infrastructure, nearing completion.

Production will begin once the integrated water use licence has been granted, said Wallington. The Department of Mineral Resources has already awarded CoAL the mining licence for Vele.

Turning to the companys other operations, Wallington said the Woestelleen collieries had continued to progress as planned, while the production ramp-up at Mooiplaats had been significantly enhanced.