UPDATE 1-Coal of Africa says on track for Mooiplats startup

* Expects Mooiplats output to start in Q1 2010

* Vele project capex estimated at 350 mln rand

JOHANNESBURG, Jan 29 (Reuters) - South African miner Coal of Africa Ltd (CZA.L)(CZA.AX) said on Friday it is still on track to commence production of export quality coal at its Mooiplats project in the first quarter of 2010.

Coal of Africa, which produced 26,000 tonnes of lean coal at Mooiplats in the quarter to December, said it was set to launch phase 1 of its Vele project upon receiving approval from the mines ministry, which is expected early this year.

The company said total capital expenditure to complete phase 1 of the Vele project was estimated at 350 million rand ($46.29 million), with 200 million rand required to double phase 1 capacity and a further 2.65 billion rand needed to complete phase 2 of the project.

Coal of Africa said last year the Vele project, which will sell coal to the South African unit of steel producer ArcelorMittal (ACLJ.J) (ISPA.AS), was being developed in two phases. It initially expected the approval from the mines ministry in the third quarter of last year. [ID:nLE283714].

Coal of Africa also said the completion of the acquisition of NuCoal, a company producing 4.2 million tonnes coal per annum during the run of mine, would allow it to fully utilise its port allocation at the Maputo Terminal in Mozambique.

"The acquisition of NuCoal will transform the company into a multiple producing mine entity and allows us to take advantage of the positive trend in international thermal coal prices," the company said in a statement. (Reporting by Shapi Shacinda)