CoAL gets go-ahead to buy Pan African Coal | Fin24

CoAL gets go-ahead to buy Pan African Coal

Jun 09 2017 11:35

Cape Town – The Chamber of Mines announced on Friday that the Competition Commission has given Coal of Africa (CoAL) [JSE:CZA] the go-ahead to acquire Pan African Resources Coal.

In terms of the transaction, which is subject to certain conditions, CoAL will buy 100% of the shares in and claims against Pan African Resources Coal.

CoAL shareholders still need to give their final approval for the transaction at the company’s annual general meeting which is set to take place on June 15. However, CoAL CEO David Brown described the approval from the Competition Commission as an important milestone in completing the transaction.

READ: Coal of Africa shares rise as miner gets green light for Makhado Project 

Pan African Resources Coal is a South African company controlled by Pan African Resources Plc‚ incorporated in Britain. It has served as an investment vehicle for the acquisition of coal operations.

Fiin24 earlier reported that CoAL received the green light to start its Makhado Project after Water and Sanitation Minister Nomvula Mokonyane lifted its suspended water use licence. 

In April 2016, CoAL’s initial 20-year licence was suspended after the Vhembe Mineral Resources Forum, consisting of concerned citizens and residents of Limpopo province, launched an appeal to the Department of Water and Sanitation. 

The lifting of the suspended water licence for the Makhado Project will enable CoAL to start producing hard coking and thermal coal for the domestic and/or export market.

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