Adding economic value

Stakeholders of Coal of Africa stand to benefit significantly in the short, medium and long term from the company’s coking coal assets. These represent a much-needed resource for economic growth and responsible development for the country and for the provinces in which Coal of Africa operates. These benefits will include substantial foreign exchange earnings, reduced reliance on the importing of coking coal into South Africa, direct and indirect job creation, infrastructure development, skills development, as well as meaningful corporate social investment and local economic development activities.

With the development of the Vele and Makhado collieries, Coal of Africa’s total capital investment in the Limpopo province (one of South Africa’s poorest regions) will ultimately amount to approximately R5 billion. Vele’s phase 1 accounts for an investment of approximately R650 million. At full production Vele is expected to earn more than R1.2 billion annually in foreign exchange. As a contributor to the national and provincial fiscus Coal of Africa’s tax payments will help grow the South African economy and will support the South African Department of Trade and Industry’s drive to increase the value of exports as a contribution to the GDP.

Initial development will provide some 1,000 direct job opportunities at Vele with 40% of the workforce sourced from the neighbouring Musina and Vhembe municipal areas.