JOHANNESBURG (miningweekly.com) – JSE- and ASX-listed Resource Generation (Resgen) is undertaking the development of some projects at its Boikarabelo mine, in the Waterberg, while it works to find a new earthworks contractor for the operation.

The coal hopeful reported earlier this month that the sudden shutdown of the Boikarabelo earthworks contractor Protech Khuthele Holdings’ operations, would delay the completion of the mine by three to six months, with first coal to be delivered only in the first half of 2016.

Protech Khuthele Holdings was placed under liquidation in July. It removed all staff from the mine site and terminated all activities, including those of its subcontractor, which was building three bridges under and over the rail line.

Resgen reiterated on Tuesday that it did not foresee any challenges in securing a new contractor at a similar cost, but said commercial prudence required a diligent process to be undertaken.

Therefore, the restart of earthworks for the rail link, roads and incomplete terraces required detailed surveys to establish a bill of quantities for retendering, all of which would take time.

In the interim, the company would continue work on several projects, including the completion of the construction camp; the completion of the first three of seven rail link bridges and the main water supply infrastructure; and the completion of a construction office complex.

Construction on the 132 kVA main power infrastructure would also continue.

Further, Resgen had also made changes to its rail haulage and port contracts to defer take or pay commitments until the first half of 2016.

Meanwhile, the company indicated that while negotiations on term sheets for project finance to complete the development of the mine had been protracted and were continuing, it had, during the three months ended June 30, made progress in terms of negotiations with three parties for the funding of mobile equipment valued at $100-million.