This follows a technical review of the geological model by an independent expert which suggests that the revised mine plan can achieve a better opportunity than previously expected.
The revised mine plan is based on selective mining and in-pit dumping with the aim of maximizing productivity and reducing operating costs.
Resgen would also implement a project development strategy that transfers mine construction risk by the appointment of a small number of reputable engineering, procurement and construction contractors with substantial balance sheets, which will allow for recourse in the event of failure or delay.
The company also plans to implements a strategy to reduce capital costs and minimize risk by appointing a suitably qualified contract miner.
In order to expand the economic base of the Boikarabelo project, Resgen is fast tracking the preparation of a bankable feasibility study for the construction of a 260 MW independent mine-mouth power station to operate as an approved independent power producer (IPP).
The project has already received the environmental and land use approvals required for the IPP. Should the feasibility study confirm economic viability, construction of the IPP will provide us with optionality with regard to the company’s domestic coal production and an additional revenue stream.
Gately says that while the technical committee is in progress, little construction work is required at the mine. The focus at site is on maintenance of the facility and structures already completed and continuation of the environmental and social responsibility programmes.