Mining company Coal of Africa Limited (CoAL) announced on Monday (15 August) that it now expects its acquisition of the Chapudi coal project to be finalised by the end of April next year.

CoAL first announced their acquisition of Chapudi from joint venture companies Rio Tinto Minerals Development Limited and Kwezi Mining (Proprietary) Limited in December last year.

The original fulfilment date of Chapudi was first set at August 1 and, earlier this month, extended to August 12. According to CoAL, they have only now obtained the “irrevocable undertakings” from Rio Tinto “in terms of the Sale of Purchase Agreement entered into on November 26 of last year.” According to BusinessReport, Chapudi was price tagged at $75 million.

The agreement, said CoAL, had been extended to allow for the remaining regulatory approvals required, which includes the Ministerial consent. If CoAL gets the go-ahead for Chapudi, it will double their Makhado project to 947Mt resource and ensure CoAL’s position as the dominant landholder in the Soutpansberg coal basin. The Makhado and Chapudi projects are situated just north of the Soutpansberg, about 60km from Musina.