Coal of Africa Ltd. (CZA.AU) said Thursday it has received approval from South Africa's Department of Mineral Resources to take a bulk sample from its Makhado coking coal project.

The project, which is 100% owned by CoAL, is located in Soutpansberg, close to Rio Tinto Ltd.'s (RTP) Chapudi project and covers more than 23,000 hectares.

Following processing and laboratory analysis of the bulk sample, the coal will be provided to steel producer ArcelorMittal South Africa Ltd. (ACL.JO) to test in its coking ovens at Vanderbiljpark, CoAL said. The testing is necessary in order to finalize terms of a proposed agreement between the coal company and ArcelorMittal SA, including conditions relating to pricing and volumes, it said.

-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; robb.stewart@dowjones.com
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