15th Oct 2013 09:57
LONDON (Alliance News) - Coal Of Africa Limited Tuesday said its board have approved a ZAR220 million expansion at its Vele Colliery in South Africa.
The junior thermal and coking coal developer said the decision came after a re-evaluation of the quality of coal at the site and the conclusion of an ongoing review.
Coal of Africa said it has commenced the required fundraising which should be finalised by the end of March 2014 and expects to ramp up operations during 2015, to be at full production by the end of that year.
The company said that as part of the process and in order for the colliery to reduce current costs, it has ceased production throughout October to prepare for the construction phase of the announced expansion.
Coal of Africa shares were up 4.6% to 8.47 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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