JOHANNESBURG (miningweekly.com) – ASX- and JSE-listed Resource Generation (Resgen) has entered into a 20-year export coal offtake agreement with Valu Investments, a special purpose vehicle that will be jointly owned by entrepreneur Jaimin Vyas and Indian energy infrastructure company IL&FS Energy Development Company.
Under the terms of the agreement, Valu would initially buy one-million tonnes of export coal a year from Resgen’s Boikarabelo mine, in South Africa. Once Stage 2 production at the mine is started, this volume would increase to two-million tonnes a year.
Coal prices would be set by reference to an internationally recognised index at the time of each shipment.
Further, Valu has agreed to conduct feasibility studies for the proposed development of both a 200 MW and a larger 1 200 MW coal-fired power station adjacent to the Boikarabelo mine.
Resgen granted Valu the right to own, build and operate both coal-fired power stations as an independent power projects.