“This application is a significant step in the process of meeting all regulatory requirements to enable the establishment of the coking coal mine at Makhado,” Coal of Africa chief executive officer John Wallington said.

An extensive environmental management program will be formulated after the company receives the NOMR from South Africa’s Department of Mineral Resources.

Bulk sampling of 19,100 tonnes of the project’s coal has already been approved.

The coal will be transported to the Exxaro Resources’ Tshikondeni Colliery to produce about 4400 tonnes of coking coal, with processing expected to start by mid-March.

Steelmaker ArcelorMittal will test the sample product, expected to help finalise the negotiations for an offtake agreement.

The Makhado project in the Limpopo province holds 1.3 billion tonnes of resources.

First coal is expected in 2012 at an initial rate of 2 million tonnes per annum, while a later ramp up will lift production to 5Mtpa.

Coal of Africa wholly owns the project as its farm swap agreement with Rio Tinto struck last year was executed last week.

Coal of Africa shares are up 5.9% to $1.70 this morning.