CoAL CEO David Brown
JOHANNESBURG (miningweekly.com) – Triple-listed Coal of Africa Limited’s (CoAL’s) shares on the JSE rose by 8.51% on Monday morning after the company announced that Water and Sanitation Minister Nomvula Mokonyane had lifted the suspension of the integrated water use licence (IWUL) for the Limpopo-based Makhado project.
The IWUL for Makhado was suspended in April 2016, after the Vhembe Mineral Resources Forum and other parties lodged an appeal with the Department of Water and Sanitation.
Following representation by CoAL in May 2016, and again in February this year, the Minister exercised her discretion and lifted the suspension.
The granting of the IWUL is a significant milestone for CoAL, bringing the Makhado project closer to production.
“The lifting of the suspension of the IWUL by the Minister is welcomed, as this decision completes the suite of regulatory authorisations required for the Makhado project,” CoAL CEO David Brown said in a statement.
He noted that it further confirms government’s support for the Makhado project and its potential to drive sustainable socioeconomic transformation.
“We will continue to work with all parties to ensure that the matter is completed satisfactorily and, furthermore, to secure the remaining surface rights.”
The Makhado project is estimated to hold 344.8-million mineable tonnes of coal in situ.
The resource will initially be mined on an opencast basis over 16 years with the potential for further expansion underground.
CoAL’s share price on the JSE rose to 51c on Monday morning, compared with Friday’s close of 47c.