Adding economic value
Stakeholders of Coal of Africa Limited (CoAL) 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 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’s total capital investment in Limpopo Province (one of South Africa’s poorest regions) will ultimately amount to approximately R5.5 billion. Vele’s Phase 1 accounts for an investment of approximately R1 billion. 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’s tax payments will help grow the South African economy and 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.