Sedgman wins Boikarabelo contracts

1st August 2018 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – ASX-listed Resource Generation (Resgen) has executed three separate contracts for its Boikarabelo coal mine, in South Africa.

Project house CIMIC on Wednesday announced that its mineral processing company Sedgman had been awarded the design, engineering procurement and construction contract for the coal handling and preparation plant (CHPP), as well as for the ongoing operation and maintenance of the plant.

The design, engineering procurement and construction contract will generate some $210-million in revenues for Sedgman over the next 26 months, while the operations and maintenance contract will generate revenues of $100-million over a four-year period, post the completion of the facility.

The CHPP will have a 15-million-tonne-a-year capacity.

Resgen is targeting a Stage 1 mine with saleable coal production of six-million tonnes a year at Boikarabelo.

CIMIC said that work on the project is expected to start once project funding has been finalised, with debt providers currently in the final process of credit approvals.