Coal of Africa plummets after Save Mapungubwe coalition withdrawal

South African mining company Coal of Africa's share price plummeted on Monday morning following news that the Save Mapungubwe Coalition had withdrawn from a Memorandum of Understanding with the company.

South African mining company Coal of Africa's share price plummeted on Monday morning following news that the Save Mapungubwe Coalition had withdrawn from a Memorandum of Understanding with the company.

The Memorandum of Understanding was signed in November 2011 committing both parties to working together and strengthening cooperation in the interest of sustainable development and the preservation and protection of the Mapungubwe Cultural Landscape in the Northeast of South Africa.

In a public statement released on December 7th, the coalition stated that there was additional information highlighting past and on-going non-compliance with water legislation at the Vele Colliery as well as existing detrimental impacts that required remediation.

Coal of Africa said it is of the firm view that the basis on which the Coalition is withdrawing and its allegations are inaccurate and said it had addressed this on numerous occasions with the Coalition.

The company further claimed that the Coalition had not, to date, been to the Vele mine in spite of numerous invitations from the company for it to visit in order to observe and appreciate the systems introduced to manage the environment.

Coal of Africa added that mine is regularly audited by environmental authorities and stated that to date it had not received negative feedback on environmental compliance. It said it is compliant with the requirements of the Environmental Authorisation for the mine as evidenced by the consistent compliance record exceeding 90% on environmental audits at the mine conducted by an independent environmental control officer and independent environmental manager .

The company reiterated that Vele has valid regulatory licenses and permits, including the Integrated Water Use Licence, for all of its activities and production would continue as planned. In this regard, it confirmed that the Coalition's withdrawal from the memorandum of understanding would not have an impact on the daily operations at the mine.

John Wallington, Chief Executive Officer, commented: "Coal of Africa looks forward to a constructive on-going working relationship with the coalition in the Environmental Management Committee established in terms of the Environmental Authorisation for Vele.

"The company would want the Coalition to utilise the committee constructively, as stated in their press release, to ensure compliance with environmental, water and heritage legislation at Vele, and the preservation and protection of the Mapungubwe Cultural Landscape."

Shares were down 8.0% at 11.5p by 09:24.

MF

Recommended

Share tips of the week - 12 August
Share tips

Share tips of the week - 12 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
12 Aug 2022
Britain’s ten most-hated shares – w/e 9 August
Stocks and shares

Britain’s ten most-hated shares – w/e 9 August

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
10 Aug 2022
Aviva: One for income investors to tuck away
Share tips

Aviva: One for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
10 Aug 2022
Director dealings w/e 5 August: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 5 August: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
9 Aug 2022

Most Popular

UK House Prices Set To Fall? It’s Not So Simple
House prices

UK House Prices Set To Fall? It’s Not So Simple

Figures suggest UK house prices are starting to slide, but we shouldn’t take these numbers at face value, explains Rupert Hargreaves.
11 Aug 2022
Are UK house prices finally heading for a crash?
House prices

Are UK house prices finally heading for a crash?

The latest house price figures show a fall of 0.1% in July. With interest rates rising, inflation hitting double figures and a recession on the cards,…
5 Aug 2022
Three solar stocks to invest in
Renewables

Three solar stocks to invest in

This week, professional investor Nicholas Mersch of the HANetfS&P Global Clean Energy Select HANzero UCITS ETF tells us three solar stocks to invest i…
12 Aug 2022