Sydney, Australia — 20 March 2013 – Energy-related resource development company Resource Generation Limited “’ which is Australian-based and dual-listed on the Australian and Johannesburg stock exchanges “’ has expressed its intention of finding alternative sources to fund its US$630 million Boikarabelo coal project in the Waterbereg area of South Africa.
This comes after the company received credit approvals this week from its mandated credit providers that included commercial conditions which the company considered unacceptable. Resource Generation is now looking at other funding options and has received substantial interest from potential equity providers, to enable the construction of one of South Africa’s largest remaining coal mine prospects.
Company managing director Paul Jury commented: “Without contingencies and costs associated with debt funding, capital expenditure is estimated at US$630 million. If we secure finance from alternative sources to part-fund this expenditure, the company will have flexibility to raise the remaining capital required to complete construction of the mine by way of equity or debt at a later time,” he added.
“We have a short ramp-up planned,” said Jury, “aiming at 4Mtpa saleable in 2015, 5Mtpa in 2016 and 6Mtpa in 2017,” he estimated.
In the next stage production would be accelerated to the 20Mtpa-plus ROM capacity of the first shovel, and a second shovel would add more than another 20Mtpa ROM. This would push ROM output to between 40 and 50Mtpa, and saleable coal production to 18 to 20Mtpa by late 2019, he concluded.
Source: Resource Generation. For more information, click here.