JOHANNESBURG (miningweekly.com) – JSE-and ASX-listed Coal of Africa Limited (CoAL) has suspended production at its Vele colliery as it prepares for the construction phase of the operation’s expansion.
CoAL approved a R220-million expansion project in August and the halted operations would enable the colliery to reduce the current cash losses incurred.
The Vele colliery had concluded engagements with contractors and had retained 49 people, redeployed 138 employees and retrenched 155 workers.
CoAL has committed to recruiting workers locally, as construction kicks off in 2014.
The group expects the expansion to be completed by the end of 2014, after which the colliery would ramp up to full production by the end of 2015.
CoAL had also started the required fundraising activities, which would be concluded by the end of March.
The expansion strategy followed the re-evaluation and confirmation of the quality of coal at Vele, and the conclusion of a review of the current operations.