14th Jan 2016 09:18
LONDON (Alliance News) - Coal of Africa Ltd Thursday said it has been granted the integrated water use licence for the Makhado project in South Africa, allowing the company to focus on securing funding so it can construct the coal operation.
Coal of Africa shares were up 4.3% to 2.45 pence per share on Thursday morning.
Chief Executive David Brown said the award represented a "significant milestone" for the company, which will now focus on its funding requirements in order to commence construction activities in the second half of 2016.
Based on the definitive feasibility study covering the project and released back in 2013, Coal of Africa's project will produce 2.3 million tonnes per annum of hard coking coal and a further 3.2 million tonnes per year of thermal coal over the life of mine. Tests confirmed that the coal can be successfully beneficiated to produce high-strength coke for the steel manufacturing industry.
Coking coal is used for steel production, whereas thermal coal is used for burning, mainly in power generation.
By Joshua Warner; [email protected]; @JoshAlliance
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