Coal of Africa’s Vele Colliery mining right subject of South African court appeal

Coal of Africa (LON:CZA) told investors that appeals against the New Order Mining Right (NOMR) awarded to the company’s wholly-owned subsidiary Limpopo Coal Co, for the Vele Colliery in South Africa, “have no basis or legal merit whatsoever”.
The company announced that court papers have been served in the South African High Court for an interdict application - a type of prohibition order - on Limpopo. Coal of Africa noted that the applicants for the interdict are a group of “predominantly environmental and conservational” non-governmental organisations (NGOs).
Coal of Africa acknowledged that the South African Department of Mineral Resources (DMR) - the government body responsible for the issue of NOMRs - has received a number of appeals against the Vele Colliery NOMR as well as the approval of the colliery’s Environmental Management Plan (EMP).

The company has subsequently responded to the appeals, and the appellants have 21 days to comment on its response, following which the South African authorities have 30 days in which to make a decision.

Coal of Africa state that: “the execution of the NOMR and approval of the EMP was the result of an extensive and exhaustive process spanning a period of more than 18 months, including public and government participation and the engagement of over 12 independent experts who contributed to a comprehensive Environmental Impact Assessment”.
“The directors believe that most of the issues raised in the appeals have already been addressed during the Environmental Impact Assessment phase, within the Environmental Management Plan, or are simply conjecture unrelated to the Vele mine, and these comprehensive documents do not have the deficiencies claimed.”
Additionally, the company noted that the applicants also seek an order that Limpopo Coal stop earth moving activity and plant construction until a water licence is granted, and until a de-proclamation of "nature reserve" areas covered by the mining right, has been processed.