CoAL applies for Makhado mining right
Emerging coal-miner Coal of Africa Limited (CoAL) on Monday lodged a new-order mining right application with South Africa’s Department of Mineral Resources (DMR) for its Makhado project in Limpopo.
CEO John Wallington said that the application represented a significant step in the process of meeting all regulatory requirements to enable the establishment of the coking coal mine.
The company completed baseline social and environmental studies for Makhado and Wallington said that consultation with interested and affected parties would now get under way.
Once the DMR accepted the new-mining order right application, economic, social and environmental impact studies would be prepared as part of the environmental management programme.
CoAL, which had to suspend construction at its Vele project amid concerns that it would increase pollution near Mapungubwe World Heritage site, previously said that it did not expect environmental issues to affect the Makhado project.
Meanwhile, Wallington said that CoAL was in the process of completing the extraction and testing of a bulk sample from Makhado.
The sampling involves the extraction of 19 1000 t of run-of-mine coal that would be beneficiated at Exxaro’s Tshikondeni Colliery to produce about 4 400 t of coking coal.
The company planned to have the full sample extracted and transported to Tshikondeni for processing by mid-March.
The sample would then be tested by ArcelorMittal South Africa, which would facilitate a proposed offtake agreement between the two parties.
A definitive feasibility study for Makhado had also been largely completed and CoAL would start with the detailed design phase of the project as soon as it received approval for the new-order mining right.
The company hoped to start production from Makhado by mid-2013
Wallington believed that the conclusion of the $75-million acquisition of Rio Tinto’s coal assets would boost its application for the neighbouring Makhado’s mining rights.
This article was originally posted on Africa Oil & Mining Network
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