Coal of Africa Limited (AIM, ASX, JSE: CZA) announced that it has been granted two New Order Mining Rights (NOMR) by the South African Department of Mineral Resources (DMR). Investors welcomed the news on London’s AIM market, with shares advancing nearly 8.5% following the announcement.
Coal of Africa has received an unconditional NOMR for the Vele coking coal project in the Limpopo Province. The group currently owns own an 80 percent interest in the project, with an agreement in place to acquire the remaining 20% following receipt of the NOMR.
For the Holfontein coal project, located to the east of Johannesburg, near the centre of Sasol’s Secunda coal production area, the company has received a conditional NOMR subject to the delivery of certain documents to the DMR.
"This is one of the biggest milestones in the company's history and allows us to proceed toward development of our Vele coking coal project immediately upon execution of the mining licence", MD Simon Farrell commented.
Coal of Africa expects to execute both rights with the DMR by the end of February 2010.
Disclosure: The author holds no positions in the company