19th Feb 2014 13:28
LONDON (Alliance News) - Coal of Africa Ltd said Wednesday it has appointed Sedgman South Africa for the front-end engineering design, for its plant modification project at its Vele Colliery, in South Africa.
The thermal coal exploration and development company, which has projects in South Africa, is modifying and expanding its Vele Colliery plant, which will enable it to produce three coal products simultaneously. It is expecting processing capacity of 2.7 million tonnes of run-of-mine per year, it said.
Coal of Africa said under the contract, Segdman will establish the process and engineering design parameters for the plant modification. It said the construction of the plant modification is expected to be completed during the first-half of the calendar year 2015, followed by a production ramp-up phase.
"We are currently focused on finalising off-take agreements and obtaining project finance for the plant modification, and are confident that this will be concluded within our committed time lines," said Chief Executive Officer David Brown in a statement.
Shares in Coal of Africa were trading 2.4% lower at 5.55 pence per share Wednesday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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