Photo by: Bloomberg
PERTH (miningweekly.com) – South Africa-focused Resource Generation (Resgen) has secured a loan facility of up to $113-million for the mobile equipment fleet with Komatsu Financial, for its Boikarabelo coal project, in the Waterberg.
“This agreement represents several important elements for the project. It not only secures the funding required for the mining fleet for Stage 1 of the Boikarabelo mine development, but also establishes a key partnership for further mine expansion to occur,” said Resgen MD Paul Jury.
“The transaction clears the way for final infrastructure designs and refines training and maintenance processes. In addition, it provides clarity in relation to negotiations for remaining debt.”
The loan facility, which would run for five years, would see Resgen purchasing the fleet equipment from Komatsu Southern Africa.
There were a number of conditions precedent for the loan including signing of the sale agreement for the equipment, registration of security over the equipment and the signing of the balance of the debt required to complete project construction.
Stage 1 of the project would deliver a six-million-tonne-a-year operation. First production was delayed by between three and six months to the first half of 2016, after the sudden shutdown of the project's earthworks contractor Protech Khuthele.