29th Jul 2016 10:07
LONDON (Alliance News) - Coal of Africa Ltd on Friday said it expects construction at its Makhado coking coal project in South Africa to begin in 2017, once regulatory approvals have been received, noting the delay is a result of "the complex environment in which mining operates".
The miner was granted environmental authorisation for Makhado back in August 2013 and, as a result, was required to begin certain work on the asset within a three-year period.
Then in late 2014, an interim court interdict was issued against the environmental authorisation granted to the company for the Makhado project, leading Coal of Africa to launch a counter-claim in March 2015 to get the interdict removed so that it could continue progressing the project.
The court ruled that Coal of Africa did not have to conduct a strategic regional impact assessment for the project, but a second ruling meant the environmental authorisation interdict remained in place while further reviews are carried out.
However, on Monday, Coal of Africa said it believes all regulatory approvals will be obtained for construction to commence in 2017, noting that a further four-month ramp-up phase will result in the production of 5.5 million tonnes per annum of saleable product.
"Coal of Africa remains committed to the sustainable development of the Makhado Project, whilst recognising its potential to drive significant socio-economic transformation," Coal of Africa said.
Coal of Africa shares were down 1.5% at 3.69 pence Friday.
By Hannah Boland; [email protected]; @Hannaheboland
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