Fulfils Chapudi obligation to Rio
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