Coal of Africa Ltd CZA Mooiplaats Strike Action Update

  Coal of Africa Ltd (CZA) - Mooiplaats Strike Action Update

RNS Number : 1622Q
Coal of Africa Limited
02 November 2012










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 Coal of Africa                          +27 11
                Officer                                                 575
                                                                        4363
Wayne Koonin    Financial       Coal                                 of +27 11
                Director        Africa    575
                                                                        4363
Shannon Coates  Company         Coal of Africa                          +61 89
                Secretary                                               322
                                                                        6776
Sakhile Ndlovu  Investor        Coal of Africa                          +27 11
                Relations                                               575
                                                                        6858
Jos             Financial    PR Tavistock                               +44 20
Simson/Emily    (United                                                 7920
Fenton          Kingdom)                                                3150
Chris  Sim/Neil Nominated       Investec Bank plc   +44 20
Elliot          Adviser                                                 7597
                                                                        5970
Robert Smith    JSE Sponsor     Investec Bank Limited                   +27 11
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Charmane        Financial    PR Russell & Associates              +27 11
Russell/Jane    (South                                                  880
Kamau           Africa)                                             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.

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


MSCEAPFFEFAAFFF -0- Nov/02/2012 07:00 GMT
 
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