JOHANNESBURG (miningweekly.com) – JSE-listed coal miner Resource Generation (Resgen) on Thursday said it was continuing conversations with a club of potential financiers to provide project finance for the construction of its Boikarabelo mine, in the Waterberg region.
The club included two local senior lending banks, two State-owned financial institutions, two export credit agencies and Noble Group.
Negotiations on the finalisation of a terms sheet with all financiers in the club had continued, with the expectation that it would provide all required remaining funding for the mine’s construction. Consequently, if the proposed facility was made available, an associated equity raising was not envisaged.
While this protracted process was ongoing, the company continued to explore alternate debt funding arrangements to increase the chances of finalising the successful development of the mine.
The first phase of the mine’s development would target saleable coal production of six-million tonnes a year.
Meanwhile, Resgen highlighted that the construction of the mine’s infrastructure continued during the quarter ended March 31, including three rail link bridges; power supply infrastructure; earthworks relating to the rail network stabilisation facility (NSF) and 13 km of water pipeline associated with the effluent treatment plant.
Electrical engineering company EHL Energy continued to erect power poles for the 132 kV power transmission lines, with work substantially complete.
Further, construction of the substation and switch room had also started and was scheduled for completion by October. The power supply was funded by a deferred payment facility.
Earthworks for the NSF were completed, including final drainage and retaining walls. The rail turnouts and associated signalling would be installed mid-year.
Meanwhile, the company highlighted that the Marapong effluent treatment facility in Lephalale and the 58 km pipeline to Boikarabelo were an integral part of the mine’s social and labour plan.
“Earthworks were previously completed for a 13 km section of the pipeline adjacent to a main road. The majority of the pipes have been installed and testing is under way,” it said.