Coal of Africa (CoAL) is reviewing prospects for a second acquisition, soon after completing its purchase of Uitkomst Colliery from Pan African Resources, to generate cash while it develops its flagship Makhado coal mine, it said on Monday. CoAL has been battling to move forward with Makhado in the Soutpansberg area, in the teeth of strong opposition from local farmers and environmentalists, and banks’ aversion to lending money for new coal mines. Makhado was planned to be a large mine, producing about 5.5-million tonnes a year of coking and thermal coal, at a capital cost of about $281m. The plans are being revised which might make it smaller, less expensive and able to deliver its first coal sooner. CoAL CEO David Brown said the board of directors would review the revised plan for Makhado in August. In the year to June CoAL generated $1.1m from customers and earned $132,000 in interest income, which was less than needed to cover $3.2m of staff costs and $8.2m of administration and...
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