25 Sep 2012 11:12
ANNOUNCEMENT 25 September 2012
strike action at Mooiplaats
Coal of Africa Limited ("the Company" or "CoAL") confirms that the National Union of Mineworkers (NUM) has embarked on protected strike action at the Company's Mooiplaats Colliery, near Ermelo, in Mpumalanga province, with effect from this morning Tuesday, 25 September 2012. The strike action is in relation to annual wage negotiations.
The Company proposed a fair wage and benefit offer which amounted to an increase of 22% (all inclusive). This offer was not accepted by the workers. The NUM then applied for and was awarded a certificate to embark on a legal strike subject to the provision of 48 hours' notice to the Company on 18 September 2012.
CoAL immediately countered this through a Section 150 application to the Council for Conciliation, Mediation and Arbitration tofacilitate a discussion between management and the union to resolve negotiations without the need for strike action. Unfortunately the mediation process was not successful and resulted in the workers proceeding with strike action today. Consequently the operations at the colliery have stopped. CoAL confirms that it will apply the no work no pay rule in relation to this strike.
Mooiplaats directly employs 368 people of which 176 are NUM members. The operation produces 6,000 run of mine tonnes per day.
We will advise of any material developments regarding the strike situation.
Authorised by
JOHN WALLINGTON
Chief Executive Officer
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 |
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 1.6Mtpa. Mooiplaats produces thermal coal for Eskom and other domestic users, and for export. In FY 2011 the colliery produced more than 990 000t of saleable coal, mostly for export.
Mc Mining (MCM)