Coal of Africa shares slump nearly 16% on the JSE on Wednesday after the coal mining company admitted it received an order from the Mpumalanga provincial government to address environmental concerns at its Mooiplaats colliery.
During late trade on Wednesday afternoon, CoAL shares were down 15.93% to 802c, lagging a 0.9% rise in the All Share-index.
The concerns included the lack of a pollution control dam, and the manner in which Mooiplaats was disposing of its waste.
A departmental official said in a document sent to the company last week, authorities demanded that Mooiplaats halt all activities deem unauthorised within 24 hours, or submit an application within a period of about 10 days.
“I have tried to get hold of the company to ask if they have stopped these unauthorised activities but I’ve been unsuccessful,” the department’s deputy director of enforcement, Pamela Ntuli, said. She added Coal of Africa has also been directed to appoint an independent environmental practicioner within 14 days to submit a rehabilition plan for the colliery.
The company on Wednesday acknowledge receipt of the document from Mpumalanga’s department of economic development, environment and tourism, which stated the authorities’ intention to issue a compliance notice in terms of environmental regulations.
“Pursuant to the terms of the Letter, CoAL may make an application for rectification within 10 days of receipt of the letter, being 11 November 2010, following which the department has stated that it may decide not to issue the company with a compliance notice.”
Coal of Africa’s Vele coking coal mine in Limpopo province has been shut down since August, because it started mining without an integrated water licence.