Your information is not correct. An agreement

1.
Why was the Mudimeli community not included in the Makhado BEE agreement?
Your information is not correct.
An agreement has been signed with the communities enabling their acquisition of a 20%
share in the project. Seven communities affected by the project, including the Mudimeli
community, are included in this transaction. Depending on future coal prices, the
community benefit of this transaction may run into billions of rands.
Please note that CoAL has undertaken an extensive and rigorous stakeholder engagement
process with a number of land claimant communities, as well as landowners in the area, in
line with the MPRDA and the National Environmental Management Act (NEMA). As
Makhado remains a project at this stage, engagement will continue prior to and during
mining operations.
Stakeholders were identified in line with the requirements of the MPRDA and included
communities, government, landowners, environmental groups and other I&APs. A
comprehensive public participation process was designed and implemented for the
Makhado Project to enable meaningful and interactive communication with all of the
project’s stakeholders. This process continues and has involved:
•
An Integrated Government Forum (IGF) has been established with members of
the Department of Mineral Resources (DMR), the Limpopo Department of
Economic Development, Environment and Tourism (LEDET) and the regional
Department of Water Affairs (DWA), among others. The mandate of the IGF is to
engage on the impacts and benefits of the project, and to develop an approach
towards co-existence.
•
Parallel processes have been implemented for the applications of the new
order mining right and integrated water use licence.
•
Focus groups have been set up to provide initial baseline information, and to
identify any specific and common issues.
•
Working groups have been created as structured forums to engage on critical
issues. These include water, biodiversity, sensitive and protected areas, and
socio-economic concerns.
•
To enable communities to engage, it was necessary, at the outset, to support
them in unifying as a voice. Elections were held in each of the seven
communities, including the Mudimeli community, to establish the Makhado
Colliery Community Consultative Forum (MCCCF) as a unified and representative
structure to engage with CoAL. The company continues to engage with the
affected communities through this structure.
Further, a socio-economic model has been developed that will maximise the benefits of the
Makhado Project, with specific reference to ownership, employment, procurement,
community investment and the project’s SLP. An amount of R36 million has been committed
for the first five years of the Makhado Project, with a focus on education and infrastructure
development. Three projects will form the basis of the SLP:
•
establishment of a Learning Centre of Excellence;
•
a community water services upgrade; and
•
a community roads upgrade.
2. Apparently the lack of participation has now also come to the attention of a Swiss
NGO, which has been looking into it because of Vitol’s offtake agreement with CoAL
and Ikwezi. An SA NGO is compiling a report. So, basically, where did things go skew
and what is being done to rectify it?
Again, that is not our understanding. CoAL has engaged with both the Bench Marks
Foundation and the NGO Bread for Life. It is our understanding (and of which we have been
advised by Bench Marks) that Bench Marks is undertaking a review of coal juniors following
its review of larger companies last year. This research is being funded by Bread for Life. CoAL
has in fact responded to questions posed by Bench Marks and has met with both Bench
Marks and Bread for Life. Any linkage that you suggest was not disclosed to us.
This is in line with CoAL’s approach of engaging meaningfully with all of its stakeholders,
including affected communities and NGOs, guided by the principles of direct, comprehensive
and collaborative engagement. In line with the company’s stakeholder engagement policy
and legislated requirements, public meetings, focus group meetings and one-on-one
meetings are held with stakeholders. With specific regard to Makhado, more than 100
meetings have been held with individual representatives and groups, including the Mudimeli
community, to date.
3.
We have seen some new investors in CoAL, including guys like Marco Fernandes.
How did CoAL attract the new investors?
CoAL discloses its investors in line with stock exchange requirements. It is not appropriate
that we discuss the interests of any particular investors. The company can indicate that it
believes that by implementing its turn-around strategy and through ongoing engagement
with investors and the market, the company has received much support for its investment
case. Shareholders have continued to demonstrate their support through the recent fundraising.
4.
year?
Where does it see the company heading financially and operationally in the next
Please refer to the announcements available on our website at www.coalofafrica.co.za. CoAL
will provide a detailed update at its year end results presentation scheduled for August.
The company will continue to implement its strategy as indicated. CoAL can confirm that it
has been able to raise sufficient funds to focus on the development of its projects, and that
shareholders continue to show commitment to the strategy of the Company. You will have
seen the announcement made today that Stage 3 of a capital raising will be implemented no
later than 29 May 2015.
5.
When does it expect to mine first coal, where are the hurdles that still need to be
crossed to achieve this?
A decision to progress Makhado is dependent on the company being granted a new order
mining right, for which all the necessary steps have been taken in a process that is
underway.
CoAL has initiated discussions with potential customers and the granting of the NOMR would
be a critical step in the process to secure off- take agreements.
Construction could begin in late 2016. Construction will take approximately 26 months, with
a further four months planned for ramp-up to produce 5.5Mtpa of saleable product.
6.
Just one further question is on the capital raising and why the capital raising did
not go ahead as planned and what this means for Coal of Africa?
The capital raising has proceeded and will proceed. Stage 3 was slightly delayed but this has
had no impact on the company. Stage 3 of the capital raising will raise gross proceeds of
£7.92 million and it will conclude the capital raising, which will have raised gross proceeds of
£38.225 million.
7.
Does the company have a replacement for Michael Messer yet?
Not at this stage. Announcements will be made in due course.