Coal of Africa Limited
(ASX:CZA) says it has won a 20 year licence for water use from the Department of Water and Sanitation for its Makhado project in South Africa.
The Makhado project in the Limpopo province is in development with hopes it will produce 2.3 million tonnes per year of hard coking coal and 3.2 million toy of thermal coal over the 16 year life of the mine.
Coal of Africa also says tests have confirmed the coal can be successfully used to produce high strength coke for steel manufacturing.
The company has also be awarded a renewal of the water licence for its Vele coal mine with hopes it can bring that mine back into production.
Coal of Africa reported a net loss of $8.73 million in the 2015 financial year.
