This seems to be where the hot money is going at the moment so I'm in for a few. Tipped in the In/C last week has the potential to soar like Uramin according to the other side. I haven't put the house on it but fairly pleased so far since buying yesterday.

up again this afternoon.

take over rumours have pushed this up--I've decided to cash in before it falls back. It seems to me to have gone up too fast and I've had my fingers burnt before!!

mp
Nice one.

cheers driver---I've taken profits on sola as well before cynic and GF start shorting!

Moneyplus: I like your comment re getting out of sola!

I read about CZA recently:

"It is basic arithmetic really: take the modern hunger for raw materials and add one of the relatively few opportunities for a merger or a takeover and the result is a rising share price. In this case, the focus is Coal of Africa, which is about to start coalmining in South Africa.
"It leapt 13p to 185p amid strong volume and market chatter about a 250p bid. ArcelorMittal, the steel group, took a 16 per cent stake last month and contracted to buy much of Coal of Africas output. It could decide to buy the whole company. This week ArcelorMittal bought a 15 per cent stake in MacArthur Coal, of Australia - a sign of things to come, perhaps?"

For full article:
Article in The Times 24 May 2008

Hi Toya. This is another one I bought and sold too early rather like missing out on the really big profits on sola! this time I've realised if Mittal is buying I should get back in--only a thousand but it's a start and up today. Have you any hoil? This is my latest pick as if the iraq/kurdistan comes off they will rocket---imo and very hopeful of course!

Hi Moneyplus - I don't hold any currently as it seems to be hovering around not quite knowing where to head next, but I will jump aboard at some stage soon.

Seems to have made its mind up to head north so I've bought some today - hope I'm right!

nice rise--hope we both do well Toya.

It's really starting to shift today Moneyplus. Glad I got in when I did.

"LONDON (Thomson Financial) - Coal of Africa Ltd. said ArcelorMittal has received approval from Australia's Foreign Investment Review Board to increase its stake beyond 15 percent."

massive reserves and a bid prospect--I'm glad I'm in too.

Coal of Africa cut to reduce from buy at Arbuthnot, target price raised to 80p from 60p

Business Financial Newswire
Company has announced the successful commissioning of the Coal Plant at its first development project, the thermal coal mine at Mooiplaats. However, the coal quality underground has been worse than anticipated and as a result the company expected to produce limited quantities of saleable coal from the mine until Q1 2010.

Took a trading position in this, fundies and TA are both looking very strong and with the energy sector outperforming this could turn out to be a short to medium candidate.



Medium term I would be first looking to overcome resistance at 150p....



Broker Morgan stanley have a Buy rating and a 150p intermediate SP target saying "coal of africa was a high risk high reward play, with a bull-case target of 380p if it executes its stratergy.

Edison broker note....

From the 22nd....

http://www.edisoninvestmentresearch.co.uk/?ACT=18&ID=2236

from this is money couk 24 sept refrence coal and AU.CBRY
His advisers, led by US broking giant Goldman Sachs, are said to be currently working on various mouth-watering corporate deals, at least one of which is expected to see the light of the day well before the end of the year.
Hot gossip suggests Mittal's number one takeover priority is Coal Of Africa, 4p better at a year's high of 1191/4p, and a cash offer of 250p a share is in the pipeline.

He already owns 16.3% of the mining group, via his giant steel company Arcelor Mittal, where he is chairman and chief executive.

Speculation has been rife since he bought the stake in April that it would be only be a matter of time before he swallowed the rest of the group's equity. Its loose change for him.

Coal of Africa owns coal mines at Mooiplaats, Vele and Makhado in South Africa. Coal production is increasing and should it reach maximum levels, the shares would be worth treble their current value.

Morgan Stanley recently moved the stock to overweight, saying it had an 'attractive risk reward profile'. Its target price is 150p but that rises to 380p on a bull case scenario.

Disappointing existing US home sales, which fell 2.7% to 5.1m in August, the first monthly drop in five months, brought the Footsie off the boil.

As Wall Street dropped 74 points on the data, London followed suit. The blue-chip index lost a 26 point gain to finish 60.10 points lower at 5,079.27, while the FTSE 250 shed 123.99 points to 9,093.02.

Punters chased software giant Autonomy up to 1650p as rumours of a 28 a share bid from Microsoft did the rounds. Fund managers soon dismissed that idea and said the rise had more to

do with a bullish note from Bank of America/Merrill Lynch. The broker lifted its target price to 19 from 1660p. Late profit-taking left the close at 1610p, but still 47p up on balance.

Awaiting a knock-out 9-a-share bid from Kraft, Cadbury Schweppes rose 51/2p to 798.94p.

A 250p bid will do for me.

Found the story on the mail site.... this is hot news.......

Yesterday's trading: Mittal is steeling himself for deals

Geoff Foster, Daily Mail

24 September 2009, 9:34pm

Lakshmi Mittal, the Indian-born steel tycoon and Britain's richest man worth an estimated fortune of 12.5bn, is on the
acquisition
trail.

His advisers, led by US broking giant Goldman Sachs, are said to be currently working on various mouth-watering corporate deals, at least one of which is expected to see the light of the day well before the end of the year.
Hot gossip suggests Mittal's number one takeover priority is Coal Of Africa, 4p better at a year's high of 1191/4p, and a cash offer of 250p a share is in the pipeline.

He already owns 16.3% of the mining group, via his giant steel company Arcelor Mittal, where he is chairman and chief executive.

Speculation has been rife since he bought the stake in April that it would be only be a matter of time before he swallowed the rest of the group's equity. Its loose change for him.

Coal of Africa owns coal mines at Mooiplaats, Vele and Makhado in South Africa. Coal production is increasing and should it reach maximum levels, the shares would be worth treble their current value.

Morgan Stanley recently moved the stock to
overweight
, saying it had an 'attractive risk reward profile'. Its target price is 150p but that rises to 380p on a bull case scenario.

Talk going on around the boards on this possible bid.

looks to have got off to a flyer this morning on the back of this news................100% premium if it comes to fruition........come on my son

Yep was hoping for a bit more than this but if a bid does come in at 250p what the heck.

Ive also found that mittal was interested in a bid back in 2007/2008 so it seems he wants his baby after all.

The London Stock Exchange is set to embark on a spree of deals in a bid to transform the company. Cazenove is on the hunt for targets as the LSE's chief executive, Xavier Rolet, ponders further price cuts to respond to the competitive threat posed by rivals such as Chi-X and Turquoise. ....... or Plus?


http://www.independent.co.uk/news/business/news/new-lse-chief-cuts-staff-as-he-prepares-to-take-on-rivals-1792878.html

yes would certainly help.

tell me about it.......all my others have gone a bit belly up withe current market sell off...just seen
http://robson1974.webs.com/coal%20of%20africa/cza%20ms%20sep%202009.jpg
makes an interesting read

That must be this weekend tip from broker morgan stanley. Thanks for that WZ il whip it around the other boards..... cheers.

Picked up a few more cza on the intraday pull back.

Everything in place for a bid so im going for it with this one.

Extending gains this lunchtime.

Gets a mention here......

http://ftalphaville.ft.com/blog/2009/09/25/74016/markets-live

Had another look at this broker note and it would appear we are set for a raft of news in the coming months which should see further momentum in the SP...

Edison broker note....

From the 22nd....

http://www.edisoninvestmentresearch.co.uk/?ACT=18&ID=2236

I note Zaks (Zak Mir) post above re- to African Coal CZA and yes would agree in the short term the macd is showing overbought .......BUT it must be noted that investors are expecting news on a NOMR (mining permit) probably by the end of this next week. If you read this Broker note from Edison from last week you will see the significance they attach to this if the outcome is positive.

http://www.edisoninvestmentresearch.co.uk/?ACT=18&ID=2236

Must be also noted that we have other news on the horizon so fingers crossed.

Tried to put a positive TA picture together here and looking for first hurdle of 150p being overcome pretty sharpish if fundies work out in CZAs favour.

Good luck.....

"

News out this morning and seems its scared a few traders out but hopefully the real good news will come over the next few months hopefully starting with granting of permit news this week.......

CoAL denies any takeover approaches

Business Financial Newswire
Coal of Africa Limited says it has not received any takeover approaches.

The firm was responding to media speculation regarding an offer for the company.



Story provided by Business Financial Newswire

TA very positive...

and why shouldnt it be.

Ok not a good day today but stocks do take a breather now and again.

Just look at the positives here from this TA Yank site....

http://quote.barchart.com/texpert.asp?sym=CZA.LS

Oh... I am excited too.

IMHO - VERY STRONG BUY AT THIS SP - THERE IS NOTHING TO WORRY ABOUT - LOL LOL!!!
ANNOUNCEMENT 4 NOVEMBER 2010



RESPONSE TO MEDIA ARTICLE REGARDING MOOIPLAATS

Coal of Africa Limited ("CoAL" or "the Company"), the coal mining and development company operating in South Africa (ticker: CZA) and listed on the AIM, ASX and JSE, notes recent press articles published by media in South Africa on 3 November 2010 regarding the Company's activities at the Mooiplaats Colliery in Mpumalanga, together with the Company's recent announcement of 3 November 2010.

Coal would like to emphasise the following:

1. Mooiplaats has complied fully with all the DMR requirements

2. The Pre-compliance Notice is based on the Department of Environmental Affairs' NEMA requirements. If the principles of applying this ruling are consistently applied across the mining industry nearly every mine in this country would be forced to close.

3. Mooiplaats, in good faith, is in the process of complying with NEMA and a Compliance Notice is therefore unnecessary

4. Lack of clarity and consistency in the application of regulatory compliance negatively impacts on investment in SA and can cause significant job losses.

5. Mooiplaats will comply fully with the Pre-compliance notice.

The Colliery Environmental Management Plan (EMP) was approved on 25 September 2007 by the Department of Mineral Resources (DMR). Development of the mining area commenced in August 2008 and the financial liability provision and assessment plan was submitted for 2009 and updated in 2010.

Application was not initially made in terms of NEMA for authorization as these activities were authorized by the EMP and the general understanding within the mining industry is that as this involves a full EIA process and the environmental authorities are involved in that process no separate EIA is required for activities directly related to mining.

The Company acknowledges that it has received a pre-compliance notice (Notice) from the Mpumalanga Department of Economic Development, Environment and Tourism ("MDEDET") noting its intention to issue a Compliance Notice in terms of section 31L of the National Environmental Management Act in relation to activities undertaken by the Company on portions 1 and 9 Farm Mooiplaats 219 IT in Ermelo ("Compliance Notice"). However CoAL would like to take this opportunity to state that, contrary to the media reports, it has not been instructed nor is required by law to stop activities at the mine and only in the event that a Compliance Notice is received, will mining activities need to cease.

Pursuant to the terms of the Notice, CoAL may make an application for rectification within 10 days of receipt of (11 November 2010), following which the Department has stated that it may decide not to issue the Company with a Compliance Notice.

The activities referred to in the Notice include the construction of facilities or infrastructure, including associated structures or infrastructures:

for the storage of more than 250 tonnes but less than 100,000 tonnes of coal;

in the one in ten year flood line of a river or stream or within 32 metres from the bank of a river or a stream where the floodline is unknown;

for any process or activity which requires a permit or licence in terms of legislation governing the generation or release of emissions, pollution, effluent or waste and which is not identified in Government Notice No. R386 of 2006; and

for the manufacturing or storage or testing of explosives, including ammunition, but excluding licensed retail outlets and the legal end use of such explosives.

Other interactions with the environmental authorities include;

25 March 2009; meeting with Mpumalanga Department of Agriculture & Land Affairs was held to finalise approvals required for the construction phase to start;

27 March 2009; meeting was held with the Department of Water Affairs ("DWA") to discuss the Integrated Water Use License Application ("IWULA"). The DWA recommended that the colliery submit an IWULA for both Mooiplaats North and South as a single entity. Mooiplaats South is scheduled to commence production in 2012; and

10 June 2009 the Colliery management had a site meeting with MDEDET and the following activities were listed as requiring a Section 24 G application;

o The construction of the road and the stream crossing;

o Diesel storage tanks;

o Sewage Treatment Plant; and

o The excavation and in-filling of soil in a river/stream

The S24G applications were submitted on 15 June 2010 for all activities identified. The acknowledgement of the S24G applications was received from MDEDET on 23 June 2010. On 10 June 2009 the Processing Plant, coal stockpiles and explosives store were not identified by the MDEDET officers as activities that needed rectification.

Regional Interactions

Mooiplaats Colliery actively participates in the Grootdraai Dam Catchment Forum where regular feedback is given on activities and water qualities at Mooiplaats Colliery in the presence of DWA and MDEDET officials. Regular testing at two DWA sampling points revealed that the Colliery is within acceptable levels at the downstream sampling point situated at the Vaal River the suphate concentration is below 200mg/l. Therefore the recent allegation that the Colliery is polluting the Witpuntspruit which feeds into the Vaal River is incorrect.

When mine management at the Colliery enquired from the relevant officials the motivation for the Notice in view of the on-going interactions and rectification processes already being implemented, the responses were that of surprise and uncertainty from the officials actually dealing with these matters.

The delivery of a Pre-compliance notice with threats of closure for activities that commenced in 2008 is inconsistent with all prior Departmental interactions and, in the Company's view, totally unjustified. If the principles of applying this ruling are consistently applied across the mining industry, the Company is of the opinion that the majority of mines in this country would be forced to close. Mining related activities are specifically approved under the MPRDA at the time the Company executes a NOMR with the simultaneous approval of the EMP.

Since my appointment to Coal of Africa in July 2010, we have acknowledged the shortfalls that have manifested during the rapid growth of the Company over the past 2 years. I have also repeatedly emphasized that CoAL is moving into a new era as a mining production company with a commitment made to comply fully with all legislation. This position is supported by its ambition to graduate to the Main Stock Exchange in London which expects corporate governance of the highest level.

The Company has to date, in a short space of time, attracted well in excess of R2billion of direct foreign investment into South Africa and already employs over 1000 people. There is support from our major shareholders to increase this substantially when required to develop the economically transformative projects near Makhado.

The Company is now left with no choice but to explore all legal and constitutional options to ensure that the rights of the Company, its employees and shareholders are protected as much as possible.

The Company's intention in relation to the pre-compliance notice is to seek rectification as specified for the activities commenced, but it does not believe this is a circumstance in which closure, pending consideration of the application, is warranted and will pursue all its available options in this regard.


JOHN WALLINGTON

Chief Executive Officer

Tipped by Shares Mag this week as a recovery play.

An exclusive report from James Faulkner of WatsHot.com

Expert tipster James Faulkner, whose recent comment on Range Resources caused such an increase in volumes that the company was forced to issue a statement on the matter, provides two new tips a month and regular updates on specialist small caps site WatsHot.com.

Although past performance is no guarantee of future success, and some tips have gone down in value, the average gain per tip as at 31st December 2010 across the 23 stocks tipped last year was 73.28%.

In this report, first published last Wednesday on WatsHot.com, the expert tipster takes a detailed look at coal mining and the stocks that could help you take advantage of increasing demand for the fuel. To read more insightful analysis like this from James in his daily column and get two brand new tips each month, join WatsHot.com now.

It may be dirty, but coal is set to return to the spotlight in 2011 as demand for cheap sources of energy heats up in the developing world. Latent trends are currently being exacerbated by the recent floods in Australia which have sent coal prices to a two-year high on the back of supply disruption in the world's largest exporter of coal. The situation is said to be worse than the 2008 flooding when the coking price moved above $300 per tonne for the first time, as the number of mines and transportation infrastructure affected is much greater. For a point of reference, the mines affected in 2008 took at least 6 months to recover from the interruption and return to full capacity. The latest rain comes after the country saw its wettest September/November period on record. In the past few months coal miners Rio Tinto, Xstrata, Vale, MacArthur Coal and Aquila Resources have all declared force majeure in the coal-rich Bowen Basin, allowing them to miss delivery commitments. In the week to 24th December, coal prices at the Richards Bay Coal Terminal in Queensland jumped 14% to an average $128.10 per tonne.

The fact that Australia accounts for almost two-thirds of the global coking coal trade points to continued price spikes in the coming months. Coking coal is a vital ingredient in steel-making, and unlike thermal coal it has no obvious replacement. With demand for coking coal remaining very strong indeed in India and China, and a move to a quarterly pricing system has facilitated higher price levels since it was implemented. The Steel Authority recently agreed to pay $225 per tonne to suppliers, a level that is 74% higher than the price it paid during the year ended 31st March 2010. Broker UBS forecasts that prices will hit $250 a tonne in the second quarter of 2011.

The outlook for thermal coal the form of coal used in power stations also looks bright. A report from Deutsche Bank said prices for thermal coal are likely to be 17% higher than expected because of global shortages over the next two years. The bank predicts that thermal coal prices will reach $118 per tonne next year and $140 in 2012. Here, too, the picture is one of rising demand exacerbated by constrained supply in key producing areas.

Rising prices have proved a catalyst for M&A activity in the sector. The most notable activity of late includes Rio Tinto's 2.2 billion bid for Riversdale Mining's Mozambique operations; Vallar's $3 billion deal to make a mining company from the coal assets of the Bakrie family in Indonesia; and Walter Energy's $3.3 billion bid for Western Coal earlier this year (on which WatsHot subscribers bagged a 180% profit). 2010 saw 27 coal deals, compared to 25 in 2009, with single mega-asset transactions accounting for 15 deals and up 50% on 2009 levels, according to Wood Mackenzie Group. This trend is likely to continue in 2011. Here are a few ideas of how to play it.

Churchill Mining (CHL)

Churchill has a potentially world-class project on its hands in the East Kutai project in Indonesia. Even in the project's current embryonic state, broker Astaire believes the company could achieve a sale value in excess of $300 million significantly greater than the firm's current market capitalisation of 114 million.(Now just 85m!) Whatever the eventual outcome, payback would be relatively swift. At 20Mtpa (million tonnes per annum) and a conservative cash operating margin of $20 per tonne, the project would generate free cashflow of $400 million per annum for at least 30 years. At a more realistic margin of $30 per tonne (based on $45/t revenue and $15/t costs), this increases to $600 million per annum. Recent studies have suggested that the production rate could be as high as 35 Mtpa. Getting the project into production will require deep pockets, with direct capital expenditure estimated at $1.2 billion. However, the company states that it looks forward to "moving swiftly into the next stage in the ongoing strategic process and bringing this large scale Project into development", and discussions with third parties are ongoing.

Risk Warning: The value of investments can go down as well as up. Investing in equities can lose you part or all of your capital. Smaller company shares can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares. Not all comments on WatsHot.com cause an increase in trading volumes. UK-Analyst.com is owned by t1ps.com Ltd which is authorised and regulated by the Financial Services Authority and can be contacted at 3rd Floor, 3 London Wall Buildings, London EC2M 5SY.

Beacon Hill Resources (BHR)

Rio Tinto's $16 per share offer for Mozambique coal developer Riversdale is good news for neighbouring Beacon Hill Resources. The Moatize basin in Mozambique is one of the last undeveloped fields containing potential to produce hard coking coal and Rio's move has brought it into the spotlight. Beacon Hill Resources already produces coal on a small scale from the Minas Moatize mine, and has fully funded plans to lift production in 2012 to over 2 Mtpa (million tonnes per annum), 30% of which is expected to be coking coal for the export market. The firm enjoys first mover advantage in the basin and the current infrastructure is capable of handling the planned ramp-up in production. Broker Collins Stewart expects the shares to be a top performer in 2011. The broker values Minas Moatize at 160 million, of which 68% could be attributable to Beacon Hill, implying a pre-funding NPV (net present value) per share of 55p.

Ncondezi Coal (NCCL)

Also operating in Mozambique is Ncondezi Coal, which is located in a separate basin 26km to the north of Moatize where the presence of coking coal has yet to be proved. The shares rose sharply in December in anticipation of a significant upgrade to the existing 1.8 billion tonne JORC Resource following a recently completed 76-hole drilling programme. Upon completion, the company announced that coal had been intersected on all previously undrilled blocks, and comprehensive results are due to be announced some time in the first quarter of 2011. If coking coal is present in significant quantities then the shares should fly; if not, they will probably fall back. This is therefore an investment for risk tolerant investors only.

Coal of Africa (CZA)

South Africa-focused Coal of Africa recently entered into an agreement to pay a total consideration of $75 million for the 1 billion tonne Chapudi Coal Project, which is contiguous with the firm's Makhado Coking Coal Project. Acquired from Rio Tinto Minerals Development Limited and Kwezi Mining Limited, the Chapudi Coal Project provides the company with an additional estimated 1.04 billion tonne JORC resource (of which 90Mt is Measured, 220Mt Indicated and 730Mt Inferred), which could potentially transform its existing 947Mt Makahdo Project into a major coal mining complex situated in the Soutpansberg Basin. Near-term upside could be provided from the results from the Makhado Project definitive feasibility study due in early 2011, or the results of the bulk sample pit being developed to support the off-take agreement with Arcelor Mittal. The shares traded as high as 300p back in 2008, but the recession came along as well as several operating setbacks, pushing the shares as low as 50p. They currently trade at 110p, and broker Evolution has a risk-adjusted 205p target

CZA Coal Of Africa looks like its recovering from a January set back. A double bottom can be seen on the chart and SP bouncing up from the support given their.

Long term chart



Short term chart



Fundies.

A P/E of just 9.4 going into 2012 looks far too cheap to me. Im sure some will say value it on NAV, and I understand that the NAV position is very favourable.

Coal of Africa Ltd

FORECASTS 2011 2012
Date Rec Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Evolution Securities Ltd
28-03-11 BUY 5.82 1.13 35.50 6.70
Edison Investment Research
04-03-11 None 51.89 7.06 74.42 9.65

2011 2012
Pre-tax () EPS (p) DPS (p) Pre-tax () EPS (p) DPS (p)

Consensus 26.64 3.81 53.09 8.03

1 Month Change 0.16 0.02 0.14 0.01
3 Month Change -8.79 -1.45 -1.43 0.05


GROWTH
2010 (A) 2011 (E) 2012 (E)

Norm. EPS % % 110.90%
DPS % % %

INVESTMENT RATIOS
2010 (A) 2011 (E) 2012 (E)

EBITDA -4.82m 28.74m 62.99m
EBIT -23.75m m m
Dividend Yield 0.00% % %
Dividend Cover x x x
PER -20.62x 19.89x 9.43x
PEG f f 0.08f
Net Asset Value PS 29.41p p p

Trading Outlook 16/03/2011

Outlook



Expected developments during the next reporting period include:



Clarity and resolution of the situation at Vele.



Completion of the Makhado bulk sample tests at ArcelorMittal followed by the DFS.



Commissioning of Phase 3 of the Matola Terminals upgrade during March 2011, thereby increasing CoAL's export allocation from one to three million tonnes per annum.



Increasing the production profile at the Mooiplaats Colliery to assist in meeting the port allocation referred to above.



Progress the Rio Coal Asset acquisition, including finalizing terms with potential partners.

dyor.

Bullish item from Evolution on CZA

#ADVFN $CZA http://t.co/Sr9T88i

Nice to see the number of stock on loan (proxy for shorters) falling away pretty dramatticaly over the last few days.

">

Data Explorers

25p now.

Beginning to interesr me,recent chart(up 11%today)off low with selling seemingly over?

Report from 4th Aug.

http://www.steelguru.com/raw_material_news/Exxaro_could_be_considering_a_takeover_of_CoAL/276980.html

">http://

Perhaps it needs to break above the downward channel,finish above 20p,worth keeping an eye on?

http://www.investegate.co.uk/Article.aspx?id=201209111226280025M

his is due news now,sp looks interesting,grom earlier.

Submission by BHE for FIRB approval took place on 23 October and a decision could be anticipated on or before 22 November 2012, following the standard review period of up to 30 calendar days.
and

http://www.bdlive.co.za/business/mining/2012/11/22/attractive-assets-now-coal-strategy-is-key

http://www.investegate.co.uk/coal-of-africa-ltd-%28cza%29/rns/bhe-confirms-receipt-of-firb-approval/201211280706521783S/

Australia's FIRB approves Chinese coal producer's plan to invest in CoAL
Melbourne (Platts)--28Nov2012/138 am EST/638 GMT

Australia's Foreign Investment Review Board has approved Chinese coal producer Haohua Energy International's plan for a $100 million share placement with ASX-listed Coal of Africa, CoAL said Wednesday.

In October, CoAL said it had agreed to the investment by HEI, a subsidiary of China's Beijing Haohua Energy Resources, after South Africa's Exxaro chose not to take up its option to participate in the development of CoAL's Makhado coking coal project in South Africa.

Exxaro cited negative sentiment surrounding global and local market growth prospects at the time of opting out.

HEI's investment in CoAL is expected to speed up the development of CoAL's projects and provide direct exposure to the world's largest coking coal market in China.

"Following the granting of FIRB approval, HEI and CoAL will execute an escrow release letter pursuant to which the deposit of $20 million currently held in the escrow account will be transferred to CoAL," CoAL said Wednesday.

Approval by Chinese regulatory authorities is expected to be achieved by the end of January 2013.

The placement deal will be the first investment outside China for HEI.

The company is based in Beijing and is involved in the mining, washing, export and sales of coal products. It is also the largest anthracite coal exporter in China.

CoAL operates the Vele mine in South Africa, which has capacity of 1 million mt/year of coking coal and is also developing the Makhado project, currently in feasibility study stage, that will produce 2.2 million-2.5 million mt/year of coking coal.

CoAL is also developing several thermal coal projects in South Africa.

Maybe South Africa's Exxaro are right not to continue ??

Millions of tons of coal around SA, mostly in inaccessible / uneconomic places.
One need to know if all these grand plans are practical and economically
feasible over the next few years, having consideration of other world
coal deposits, nearer economic coal markets.
Also refer to millions of tons in Tete province Mocambique miles form a market,
plus iron ore there.
That is a place where they could produce there own steel,
with coal and lime stone, but what about a market for iron ore and steel ????

Suggest you do not build up any near term hopes for this grand Chinese plan.
Bob

Suggest you do not build up any near term hopes for this grand Chinese plan

----------------------------------------------------------------------------

Yes the inferstructure is a big problem,maling this more a long term opportunity for those with patience. I thought the recent news would be more positive than has been the case,still a profit(nowever small) is just that.Appreciate your input.

I am truly pleased you made a profit. I have no interest in anybody loosing.
As you know one can sometimes make money out of news items.
I have noticed that very good news is often short lived, and that one could
probably go short after a few hours of the good news, and profit from, a price
stabalisation which usually means a fall back, to more realistic levels.
More so than trying to go long on the good news.
Do you agree ?

I have spent years in East Africa -
not boasting, very interesting, but does need heavy investment as u say

I think your summung up is pretty much how i see it,quite often the same logic applies to bad news,where the market over-teacts,before finding a truer level.Takes a lot of nerve to trade in such circumstances,i'm a little less risk adversed in my old age.
As to CZA,i thought it near it's bottom and with pending news,thought it resonably safe? GL with your uivestments,but take care as their's some sharks out there?

.

http://www.asx.com.au/asxpdf/20130107/pdf/42c9hysz8kw4b6.pdf

CZA:Flying today on the latest news.

09 January 2013

ANNOUNCEMENT 9 January 2013
Beijing Haohua Energy Resources Co. confirms receipt of Chinese regulatory approval for US$100 million investment

Coal of Africa Limited ("the Company" or "CoAL") is pleased to announce that Haohua Energy International (Hong Kong) Co. Limited ("HEI"), a wholly owned subsidiary of Beijing Haohua Energy Resource Co. Limited ("BHE"), has advised the Company that it has received the requisite approvals ahead of schedule from the relevant authorities in the People's Republic of China ("PRC") to proceed with the subscription for US$100 million of CoAL shares at a price of GBP0.25 per share in accordance with the definitive Subscription Agreement ("Subscription Agreement").

The requisite approvals include the Beijing Municipal Commission of Development and Reform 'Approval on the transaction of BHE's share subscription from CoAL' and the National Development and Reform Commission's 'Major local overseas investments transaction approval and registration' to the Beijing Municipal Commission of Development and Reform. The approvals are valid for two years.

Under the Subscription Agreement, the Initial Placement of US$20 million has been received by the Company and the Conditional Placement of US$80 million remains subject to shareholder approval. As announced on 24 December 2012, the Notice of the Extraordinary General Meeting ("EGM") to be held on 25 January 2013, has been dispatched to shareholders to consider and approve the US$100 million investment by HEI at the EGM.

CoAL Chairman, David Brown said, "I am pleased that the remaining approvals required by HEI to complete the transaction have been received ahead of the shareholder meeting on 25 January. Upon the conclusion of this transaction, CoAL will be well placed to execute its

interesting situation but it has risen far too much imho.

Appears there will be no need for a rights issue for Coal of Africa according to a news interview with the director as he stated CZA has the full support of large investors, so the share price should recover back to the last 15p resistance level short term, as the recent drop down was due mainly to shareholders expecting a fund raising/dilution which is now off the cards for now, and the management states they are hopeful of big increases in CZA share value over the next 2 years. So might see CZA back at the £1 level again with some luck.

so probably a good time to buy this at the present low level?