JOHANNESBURG, Feb 1 (Reuters) - Junior coal mining companyCoal of Africa (CoAL) has restarted limited operationsat its Vele colliery in South Africa following heavy rainfalland flooding around the mine.
Operations at the mine, in the northern Limpopo province,were suspended earlier this month.
"Limited operations have re-commenced at the colliery andproduction is targeted for the first week of February," thecompany said on Friday.
CoAL said production in the three months to the end ofDecember fell to 1.15 million tonnes from 1.52 million theprevious quarter due to a scheduled shutdown over the festiveseason and a wage strike at its Mooiplaats colliery.
Export sales through the Matola terminal in Mozambique rose83 percent to 411,292 tonnes due to higher demand, availabilityof rail capacity and the reduction of inventory build-up in theprevious quarter.
Domestic coal sales fell 17.8 percent due to the Mooiplaatslabour unrest, while sales of middlings coal to power utilityEskom rose 26 percent.
The company also said that it had received the necessaryapproval for a unit of Beijing Haohua Energy Resource Co Ltd to inject $100 million into the company, in a dealmeant to help CoAL push on with development projects.
CoAL, which is also listed in London and Australia, has two operating collieries in South Africa,producing thermal and coking coal for the domestic and exportmarkets, and other projects in development.
The deal with Haohua Energy International (HEI) was executedin two stages, allowing HEI to subscribe for up to $100 millionof ordinary shares in CoAL at 25 pence per share.
HEI's parent is a Beijing-based coal producer and thelargest exporter of anthracite coal from China.
CoAL's Johannesburg-listed shares are up nearly 48 percentso far this year, outperforming a 3 percent rise in the JSE'sAll-Share index.
