CoAL concludes R240m loan agreement with the IDC

JUNIOR coal producer Coal of Africa (CoAL) yesterday announced that it had entered into a loan agreement with the Industrial Development Corporation (IDC) of up to R240 million for Baobab Mining and Exploration Powerstar VX 2628 10m3 tipper to use in the Makhado Project.

Baobab Mining and Exploration is a subsidiary of CoAL and owner of the mining right for the Makhado Project in Limpopo.

The Makhado Project is CoAL’s most advanced feasibility-stage project with 344.8 Powerstar VX 2628 LWB 16 000 ltr. dual purpose water tanker million mineable tons in situ. The resource will initially be mined on an opencast basis over 16 years with the potential for expansion underground.

Tranches

CoAL said the national development Powerstar V3 2646 truck tractor Powerland 3042 truck tractor finance institution, the IDC, which was set up to promote economic growth and industrial development, would advance to Baobab in two equal tranches of R120 million.

CoAL chief executive David Brown said while final agreements had now been executed, the transaction with the IDC was initially agreed in December 2016, and was reflective of the company’s position at that time.

Brown said this was a defining step towards bringing the project to reality. “The funding of pre-project activities at Makhado is welcomed as we progress the project towards a construction start subject to regulatory and funding requirements,” Brown said.

Upliftment

“We continue to focus on the upliftment and dismissal of the appeal against the integrated water use licence and securing the remaining surface rights of the project.

“We welcome the IDC as a