Resgen hoping to update market soon on Boikarabelo funding
While coal mine developer Resource Generation (Resgen) has made significant progress in finalising a set of common terms with the proposed lenders for the project finance required to build its Boikarabelo mine, in South Africa, these negotiations remain incomplete, Lulamile Xate said in his chairperson’s address at the company’s annual general meeting on Wednesday.
He told shareholders that he would likely provide a further update later in the week.
“I think that it has become clear to everyone who has been involved in our funding process that obtaining funding for a new coal mine, in the current environment, is not an easy task,” he said in his address.
He noted that, in these circumstances, the fact that the company was still continuing with negotiations with the three proposed lenders was “encouraging”.
In parallel with the process being followed to obtain project finance for construction of the mine, substantial progress had also been made with regard to the other pillars of the total funding package, noted Xate.
He informed that the funding negotiations for the rail link from mouth of mine to the main rail network were well progressed and that an international bank guarantee for the ‘yellow goods’ was also close to finalisation.
“Although the latter is the ultimate responsibility of the proposed mining contractor, we have been much involved in that process,” Xate said.
He added that while the process of obtaining project finance for construction of the mine had, at times, been very slow owing to a range of factors, a number of which were beyond the company’s control, it seemed as though the company now had the right momentum to obtain the funding it was seeking for the project.
Xate also acknowledged the continuing support of Noble Group, indicating that its extending a working capital facility to Resgen had provided the financial means to allow the company to continue the pursuit of full funding of the project.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation