Coal of Africa settles long-running dispute with Rio Tinto

Coal of Africa and its subsidiary company MbeuYashu confirmed the fulfilment of all of its obligations to Rio Tinto on Wednesday.

The AIM-traded firm said the completion happened in in June, in relation to the agreements under which MbeuYashu acquired interest in Chapudi Coal and Kwezi Mining Exploration.

Both MbeuYashu and Coal of Africa itself had challenged claims by Rio Tinto that the group owed penalties amounting to $75m.

Rio Tinto earlier said the group owed a remainder of $19m, in breach of agreements over the interest acquired in Chapudi Coal.

“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 five years,” said chief executive David Brown.

“We continue to focus on progressing our flagship Makhado Project which will deliver significant value for all our stakeholders.”