JOHANNESBURG (miningweekly.com) – The Department of Mineral Resources (DMR) and the Limpopo Department of Economic Development, Environment and Tourism (LEDET) have granted triple-listed miner Coal of Africa (CoAL) an amendment to the environmental authorisation for its Makhado project, located in Limpopo’s Soutpansberg coalfield, in Limpopo.

CoAL has applied to the departments to change the holder of the environmental authorisation, which the LEDET granted in August 2013, to Baobab Mining and Exploration, the legal operating entity of the Makhado project.

The departments have extended the validity period of the environmental authorisation by an additional five years. The environmental approval of 2013 had required CoAL to start activities within a three-year period.

CoAL noted on Monday, however, that environmental groups opposed to the development of the mine could still appeal the authorisations.

“The decision by the DMR and the LEDET is a confirmation of the government’s commitment to drive socioeconomic development, not only in our area of operation, but also the broader Limpopo province,” said CoAL CEO David Brown.

He added that the South African government’s recent designation of Musina-Makhado as a special economic zone is a further demonstration of that commitment.

“We have commenced with the implementation of our social and labour plan at the Makhado project to ensure that our communities develop the necessary skills to access the opportunities offered within the project,” he said.

According to a 2013 definitive feasibility study, the project will produce 2.3-million tons a year of hard coking coal and 3.2-million tons a year of thermal coal over a 16 year mine life.

CoAL’s shares on the JSE were down 10.14 % at 62c on Monday morning, compared with Friday’s close of 69c.

On the Aim, shares increased 15.35% to 3.75p. Last close on Friday was 3.25p.