Last checked at 2 Nov 2012 07:00
ANNOUNCEMENT 2 NOVEMBER 2012
Employees return to Mooiplaats Colliery as National Union of Mineworkers calls off strike
Coal of Africa Limited ("CoAL" or "the Company") is pleased to advise that the National Union of Mineworkers ("NUM") called-off the wage related strike at its Mooiplaats Colliery on 30 October 2012.
The decision follows a meeting held on Monday 29 October 2012 between NUM senior representatives and CoAL to resolve the strike action. The employees returned to work on 31 October 2012, and the collective bargaining unit which constitutes 27% of Mooiplaats Colliery's monthly salary bill, will receive an increase of 26% cost to company inclusive of medical aid assistance, housing allowance as well as shift and underground allowances with effect from 1 July 2012. The increase from the original offer of 22% is due to the reallocation of certain allowances into the basic salary component. The settlement translates to an increase of approximately 1% on Mooiplaats' total cost per saleable tonne.
CoAL CEO, John Wallington said, "As Mooiplaats colliery staff return to work, we have initiated management actions that will reduce operational costs and improve efficiencies at the operation. Management is fully aware of the impact the strike has had on the profitability of the mine and is implementing various initiatives to address the long term viability of the operation. We will complete the full review and restructuring of the colliery that commenced prior to the strike action."
Authorised by
JOHN WALLINGTON
Chief Executive Officer
2 November 2012
For more information contact
John Wallington | Chief Executive Officer | Coal of Africa | +27 11 575 4363 |
Wayne Koonin | Financial Director | Coal of Africa | +27 11 575 4363 |
Shannon Coates | Company Secretary | Coal of Africa | +61 89 322 6776 |
Sakhile Ndlovu | Investor Relations | Coal of Africa | +27 11 575 6858 |
Jos Simson/Emily Fenton | Financial PR (United Kingdom) | Tavistock | +44 20 7920 3150 |
Chris Sim/Neil Elliot | Nominated Adviser | Investec Bank plc | +44 20 7597 5970 |
Robert Smith | JSE Sponsor | Investec Bank Limited | +27 11 286 7000 |
Charmane Russell/Jane Kamau | Financial PR (South Africa) | Russell & Associates | +27 11 880 3924 or +27 82 372 5816 |
About CoAL:
CoAL is an AIM/ASX/JSE listed coal exploration, development and mining company operating in South Africa. CoAL's key projects include the Vele Colliery (coking and thermal coal), the Greater Soutpansberg Project, including CoAL's Makhado Project (coking coal) and the Mooiplaats and Woestalleen Collieries (both thermal coal).
The Mooiplaats Colliery commenced production in 2008 and is currently ramping up to produce 1.6 Mtpa. The Woestalleen Colliery, acquired through the acquisition of NuCoal Mining (Pty) Limited in January 2010, currently processes approximately 2.5Mtpa of saleable coal for domestic and export markets. The Woestalleen Complex also incorporates three beneficiation plants with a total processing capacity of 350,000 run-of-mine (ROM) feed tonnes per month.