[miningmx.com] — SHARES in Coal of Africa (CoAL) surged on Friday, after the miner said it had reached an agreement with Mpumalanga’s provincial government over environmental concerns that could have caused the closure of its Mooiplaats colliery.
CoAL said on Thursday it had reached an agreement with the Mpumalanga department of economic development, environment and tourism (MDEDET) to cancel a pre-compliance notice served on October 28.
“As a consequence of this agreement, we can also confirm that no compliance notice will be issued,’ a company statement read.
“Furthermore, constructive discussions with MDEDET are ongoing in relation to certain of the issues raised in the notice. The company is fully committed to comply with the legal requirements as stipulated by the National Environmental Management Act.’
CoAL had until Thursday to apply for the rectification of the issues highlighted in the notice. Failure to do so could have resulted in the colliery’s closure.
CoAL CEO John Wallington said last week the activities referred to in the notice involved the construction of infrastructure built for the storage of coal, mining-related structures erected below the floodline and operations resulting in pollution or waste, as well as the building of facilities for the manufacturing, storage or testing of explosives.
At the time, he said the majority of South African mines would be forced to close shop if environmental legislation was to be applied consistently.
