JOHANNESBURG (miningweekly.com) – Dual-listed Resource Generation (Resgen) has made demonstrable progress on material contracts and funding for the rail link at its Boikarabelo coal mine in South Africa’s Waterberg region in the three months to September 30.
The first credit approval for full funding of the link has been obtained from the Development Bank of Southern Africa.
The rail link will be built by RME, a subsidiary of Transnet Freight Rail, under a fixed-price, turnkey engineering, procurement and construction (EPC) contract.
“Progress is also being made regarding the planned 300 MW independent power producer (IPP) [plant]. A provisional equity structure under which the company and Ledjadja Coal, will have direct equity interests is under discussion,” the company said.
A joint development agreement is being drafted by Resgen’s appointed legal counsel and a full technical specification of the IPP is currently being prepared by an independent consulting firm.
It is expected that a selection process to identify and appoint the EPC contractor will begin during the first half of 2018.
During the quarter, the group drew down the final instalment of the working capital facility.
In addition, the group agreed with Noble Resources to extend the commencement of repayment of the amounts borrowed under the facility agreement from September 2017 to April 2018.
The company has also extended CEO Rob Lowe’s contract for a further 12 months.