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CoAL’s disposal of noncore assets advances

CoAL’s disposal of noncore assets advances

Photo by Reuters

2nd December 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – London-listed Coal of Africa Limited (CoAL) on Monday said its disposal of its noncore thermal coal assets, as outlined in its five-point turnaround strategy, had gained traction during the year.

CoAL had identified five noncore thermal assets, namely the Woestalleen colliery, the Opgoedenhoop mining right, Lemur Resources, Holfontein project and Mooiplaats colliery, which the company was selling off.

Following the idling of the Mooiplaats colliery in September, the Woestalleen complex and the undeveloped Opgoedenhoop new-order mining right have been sold for a combined R100.8-million in cash.

All conditions precedent to the sales of the Woestalleen complex and Opgedoenhoop have been met, including the provision of proof of funding by the buyers, but the deals remained subject to Department of Mineral Resources approval.

The proceeds would be used for working capital.

Further, progress has been made on the disposal of CoAL's shareholding in Lemur Resources to Aim-listed Bushveld Minerals.

CoAL had received 19.5-million Bushveld shares as consideration and was in the process of exploring options to monetise this asset.

Edited by Creamer Media Reporter

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