https://www.miningweekly.com

Resgen makes first drawdown from extended facility agreement

28th April 2017

By: Anine Kilian

Contributing Editor Online

     

Font size: - +

JOHANNESBURG (miningweekly.com) – JSE-and ASX-listed Resource Generation (Resgen) has made the first drawdown of $2.4-million under an extended $8.4-million facility agreement.

The company reported on March 14 that it had obtained the $8.4-million extension to a March 2014 facility agreement with Noble Resources International, with the additional funds available to Resgen subsidiary Ledjadja Coal in three tranches to September 30. The money is being used to fund the operations and development of the Boikarabelo mine, in South Africa’s Waterberg coalfield.

In a quarterly update to shareholders on Friday, the company said its main focus during the quarter ended March 31, had been to finalise the key material agreements relating to the mine and logistics including the engineering, procurement and construction (EPC) contract for the coal handling and preparation plant (CHPP), the CHPP operations and maintenance contract, the ancillary works EPC contract and the transportation of coal agreement.

It added that progress has been made towards the funding of the rail link EPC contract and that activities continue to be undertaken at the mine site preparing for the arrival of the EPC contractors.

“We are hopeful that this orderly and deliberate process will result in the conclusion of funding arrangements for the project during this year.”

State 1 of the Boikarabelo mine is expected to produce six-million tonnes a year of coal.

Parallel to advancing the development of the mine, Resgen has also continued work on establishing an independent power producer to produce electricity from coal supplied from Boikarabelo.

It expects to submit a proposal to the Department of Energy when the next submission window for the coal-based independent power producer procurement programme opens towards the end of this year.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Condra Cranes
Condra Cranes

ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...

VISIT SHOWROOM 
Rentech
Rentech

Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (15/03/2024)
15th March 2024 By: Martin Creamer
Gold, hydrogen, mining boost make headlines
Gold, hydrogen, mining boost make headlines
15th March 2024
Magazine round up | 15 March 2024
Magazine round up | 15 March 2024
15th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.136 0.168s - 90pq - 2rq
Subscribe Now