Coal of Africa shares higher as it settles dispute with Rio Tinto Minerals Development Limited

0 0
Read Time59 Second

Shares in Coal of Africa Limited (LON:CZA) moved higher as the mining firm announced settled a dispute with Rio Tinto Minerals Development Limited, bringing to an end a long standing legacy issue.

The obligations arose from Coal of Africa unit MbeuYashu Proprietary Limited’s acquired interest in Chapudi Coal Proprietary Limited and Kwezi Mining Exploration Proprietary Limited.

 “The final repayment and completion of the Rio Tinto Chapudi transaction is a milestone for the company, as it resolves the outstanding legacy issues which have plagued the company for the past 5 years. 

“We continue to focus on progressing our flagship Makhado Project which will deliver significant value for all our stakeholders,”  said David Brown, chief executive of Coal of Africa in a statement.

Along with its unit, MbeuYashu, Coal of Africa had been in the process of challenging an order issued by Rio Tinto to repay a US$75mln penalty.

In breach of agreements relating to interest acquired in the Chapudi Coal Proprietary Limited, the group must pay now a remainder of US$19mln, Rio Tinto had said previously. 

Coal of Africa shares were up 0.02p at 3.00p in early trading.