South Africa-based coal company Coal of Africa Limited (CoAL) has announced that its shareholders have approved the $100 million investment by China-based coal producer Haohua Energy International (HEI), a wholly-owned subsidiary of Beijing Haohua Energy Resource (BHE).

Accordingly, the parties will proceed with the share subscription agreement according to which HEI will subscribe for $80 million of ordinary shares in CoAL at 0.25 per share. In November 2012, CoAL received an initial payment of $20 million from the Chinese coal producer.

According to CoAL, this investment by HEI will form the basis for a strategic partnership between CoAL and BHE that will facilitate the development of CoAL's assets.