Media coverage

31 July 2014

CoAL sees progress on Mooiplaats disposal


Coal of Africa says significant progress on the disposal of the Mooiplaats colliery was made during the quarter to the end of June with potential purchasers' due diligence processes at an advanced stage.

The proceeds from the disposal of Mooiplaats will be used to reduce the Investec working capital facility and partially settle outstanding liabilities and, will complete the disposal process of the thermal coal portfolio. 

Chief executive David Brown said: "The company is assessing various additional funding mechanisms which are expected to be finalised during Q3 CY2014, including the replacement of cash-backed rehabilitation guarantees with longer-term insurance facilities. This action and the replacement of the Woestalleen guarantees by the purchaser (which is expected imminently) will facilitate the release of $2.8 million of restricted cash, and ensures that the Company has sufficient funds for the next quarter prior to any of the other initiatives being successful.

"The Sedgman FEED, Snowden Technical Review and legislative compliance work undertaken on the Vele Colliery during the quarter will enable the construction of the plant modifications to commence towards the end of CY2014, subject to the project delivering an acceptable return supported by off-take agreements and the requisite funding."

At 8:51am Coal of Africa Ltd share price was +0.12p at 3.22p.