Coal of Africa to resume operations at Vele Colliery

20 October 2011 (Last Updated October 20th, 2011 18:30)

The South African Minister of Water and Environmental Affairs has lifted suspension of the integrated water use licence for Coal of Africa's Vele Colliery in the Limpopo Province.

The South African Minister of Water and Environmental Affairs has lifted suspension of the integrated water use licence for Coal of Africa's Vele Colliery in the Limpopo Province.

With this action, Coal of Africa will commence its full operations at Vele and mobilise all remaining operational activities to complete the remaining construction at the Vele mine.

A coalition of governments opposed to Vele submitted an appeal to the country's Water Tribunal in July, which resulted in the suspension.

The Ministry has taken into consideration all relevant facts regarding the water licence and has removed the suspension.

The firm will start the process to mobilise contractors and re-employ staff immediately.

Coal of Africa's CEO John Wallington said that the firm will produce the first coking coal in the first quarter of 2012, ramping up to an initial target of 1Mtpa.