http://www.financialmail.co.za/fmfox/20 ... king-localCOAL of Africa Ltd (CoAL) is considering entering the independent power producer (IPP) space to bring its mothballed Vele colliery into production. Coal prices and logistics costs rendered the mine uneconomic.
The Vele mine in northern Limpopo has cost about R1bn and was supposed to be a soft coking coal and thermal coal operation. But coal prices fell because of sluggish economic growth in China and Europe, so CoAL opted not to bring the mine into production.
...
One of the options for Vele is to link it to an IPP scheme and CoAL wants to participate in the second round of IPP proposals, says CEO David Brown. The Limpopo government is anxious to develop an industrial base in the province and would be supportive of IPP projects to attract investment, he says.
https://www.google.de/url?sa=t&rct=j&q= ... 8890,d.bGgVele Colliery - Limpopo (Tuli) Coalfield (100% owned)
The Vele coking and thermal coal colliery ("Vele Colliery") recorded no LTIs during the period.
The original Vele Colliery Integrated Water Usage Licence (“IWUL”), valid until March 2016, has been
renewed for a further 20 years, and also amended in line with the requirements for the Plant Modification
Project (PMP) at the Colliery.
During H2 2015, the Company commenced a process to obtain approval relating to a non-perennial stream
diversion. This decision is anticipated in H2 2016. Once this regulatory approval in respect of the Colliery has
been received, a decision to proceed or not with the PMP will be placed before the board, which will include
an assessment of forecast coal prices.
