CoAL eyes possible Makhado partner

South Africa-focused Coal of Africa Limited (CoAL) has signed a nonbinding memorandum of understanding (MoU) with China’s Qingdao Hengshun Zongsheng Group for a possible equity investment into Baobab Mining & Exploration, which holds the Makhado project, in Limpopo. Under the terms of the MoU, Hengshun could invest $113.94-million to acquire a 34% stake in Baobab, with the transaction valuing the Makhado project at $335-million.