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CoAL rail plan angers farmers

Apr 20 2012 10:00
Sapa

Company Data

ARCELORMITTAL SOUTH AFRICA LIMITED [JSE:ACL]

Last traded 7
Change -1
% Change -7
Cumulative volume 546717
Market cap 0

Last Updated: 09-02-2016 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

COAL OF AFRICA LIMITED [JSE:CZA]

Last traded 0
Change 0
% Change -14
Cumulative volume 1262111
Market cap 0

Last Updated: 09-02-2016 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

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Johannesburg - Coal of Africa [JSE:CZA] (CoAL) is planning to build a R300m railway line north of the Soutpansberg in the Limpopo River basin to transport coal from the Makhado-project to ArcelorMittal SA [JSE:ACL] in Vanderbijlpark.

Marietjie Eksteen, CoAL's environmental consultant, said at a Johannesburg meeting for interested parties at the company's head office on Thursday that the tracks, with a projected cost of R22.5m, would cross nine farms, among them four game farms, Beeld reported on FRiday.

She said 400 indigenous trees, several of them protected, would have to be removed, and that the company would apply for permits to do so.

Eksteen said furthermore that the company planned to erect a game fence on both sides of the track.

Owners of game farms in the area were upset by the plans, Beeld reported, saying a fence would have a negative effect on the migration patterns of game.

They also expressed concern that CoAL's plans would impact negatively on their quality of life and the value of their land.

Farmers in the area oppose CoAL's development plans, and they anticipated that the issue would end up being settled in court, it was reported.

CoAL has meanwhile applied for a mining permit and a water licence, and hopes to begin mining in Makhado early in 2013.

 
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