WATER-USE LICENCE
CoAL clears last Makhado mine hurdle
CEO David Brown confirms the project now has the necessary mining right, water licence and environmental authorisation
Coal of Africa (CoAL) overcame the last remaining regulatory hurdle delaying its multibillion-rand Makhado thermal and coking coal project in Limpopo on Monday after Water and Sanitation Minister Nomvula Mokonyane lifted the suspension of the company’s integrated water-use licence. The licence was suspended a year ago after a challenge by the Vhembe Mineral Resources Forum and other parties. CoAL shares had risen by 6.4% or 3c to 50c by midafternoon trade, after touching an earlier intraday high of 51c. CEO David Brown said the project now had the necessary mining right, water licence and environmental authorisation. The management could proceed to start fund raising in the second half of 2017 and finalise the marketing plan for the mine. The last updated estimate of capital costs for Makhado was $280m and the management was considering a "Makhado Lite" plan involving lower capex, a smaller production profile and quicker construction time, Brown said. The amended plan would still de...
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