Environmentalists one, Coal of Africa, one, going into extra time.
The UK listed company has had its water licence suspended at its controversial Vele Colliery in South Africa following an appeal submitted by an NGO coalition on Thursday. The company had received environmental consent for the colliery, which is close to a Unesco world heritage site, earlier in July, but this new move means it cannot proceed with activities at the site requiring water use. Planning for other construction and mining activities not requiring water is continuing.
Coal of Africa said it was now preparing its own urgent appeal to the minister of environmental and water affairs, requesting the licence remains in force. Its chief executive John Wallington said:
Whilst we acknowledge the [NGO] coalition's right to appeal against the granting of the [licence], we are equally aware of our right to make representations to the minister to lift the suspension. Although the appeal limits our use of water at Vele, mobilisation continues towards bringing the mine into production.
We are pursuing our right with the firm conviction that the responsible development of the Vele Colliery is in the interests of the broadest cross-section of our stakeholders and of South Africa as a whole.
This distraction could result in negative sentiment today and in future, and we remain wary of recommending an investment in Coal of Africa as a result.
