Ful­fils Cha­pudi obli­ga­tion to Rio

The Star Early Edition - - COMPANIES -

COAL of Africa Lim­ited (CoAL) and its sub­sidiary, MbeuYashu, an­nounced CoAL has ful­filled all its obli­ga­tions to Rio Tinto Min­er­als in re­la­tion to the agree­ments un­der which MbeuYashu ac­quired in­ter­est in Cha­pudi Coal and Kwezi Min­ing Ex­plo­ration.

This comes af­ter CoAL said in March it would dis­pute claims it was in breach of obli­ga­tions over its ac­qui­si­tion of the Cha­pudi coal as­sets, part of the Greater Sout­pans­berg project in Lim­popo.

CoAL chief ex­ec­u­tive David Brown said: “The fi­nal re­pay­ment and com­ple­tion of the Rio Tinto Cha­pudi trans­ac­tion is a mile­stone for the com­pany, as it re­solves the out­stand­ing legacy is­sues which have plagued the com­pany for five years.

“We con­tinue to fo­cus on pro­gress­ing our flag­ship Makhado project which will de­liver sig­nif­i­cant value for all our stake­hold­ers.”

In 2012, CoAL com­pleted the ac­qui­si­tion of Cha­pudi. This year, CoAL and MbeuYashu re­ceived a no­tice from Rio and Kwezi stat­ing all amounts owed were due. But CoAL said the orig­i­nal amount owed to Rio Tinto and Kwezi was $75 mil­lion (R990.25m) of which $56m had been paid, and only $19m re­mained out­stand­ing. – ANA

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