Go Back Email this Link to a friend


Resource Generation Limited - New Export Offtake Contract And Ipp Arrangements

Release Date: 10/07/2013 08:35:00      Code(s): RSG     
Resource Generation Limited
Registered in Australia under the Corporations Act, 2001 (Cth) with registration number ACN: 059 950 337
ISIN: AU000000RES1
Share Code on the ASX: RES
Share Code on the JSE: RSG
("Resgen" or the ?Company?) 


New export offtake contract and IPP arrangements

Resource Generation Limited has entered into two arrangements with Valu Investments
Pte. Ltd (Valu), a special purpose vehicle which will be jointly owned by Mr Jaimin
Vyas, who is an entrepreneur, investor and project developer in the infrastructure sector,
and IL&FS Energy Development Company Limited (?IEDCL?), an Indian company
which specialises in the energy infrastructure space.

Valu has entered into a 20 year export coal offtake contract for 1.0 million tonnes per
annum of coal, with supply after production commences at the Boikarabelo mine. Coal
prices will be set by reference to an internationally recognised index at the time of each
shipment. Following the commencement of stage 2 production, the volume increases to
2.0 million tonnes per annum. In conjunction with this, the existing 0.5 million tonnes
per annum contract with Bhushan Steel Limited (Bhushan Steel) has been terminated
with no penalty payable by either party. Bhushan Steel is not a shareholder in Resource
Generation.

Valu has undertaken to conduct feasibility studies for the development of both a 200 MW
power station and a larger 1200 MW coal fired power station proposed to be located
adjacent to the Boikarabelo mine. Resource Generation has granted Valu the right to
own, build and operate both of the coal fired power stations as an independent power
project. In conjunction with this, the feasibility study arrangements with CESC Limited
have been terminated with no penalty payable by either party.

The export coal contracts are currently as follows in mtpa:
                        Stage 1                                      Stage 2
                    Y1-Y3 Y4-Y7               Y8      Y9-12    Y13-14 Y15-20         Y21-35     Y36-Y38
 CESC                  1.0      2.0           4.0       4.0       4.0       4.0         4.0          4.0
 Noble                 0.5      0.5           0.5       1.5       2.0       2.5         2.5
 Valu                  1.0      1.0           2.0       2.0       2.0       2.0
 Total                 2.5      3.5           6.5       7.5       8.0       8.5           6.5           4.0

 Note. If, as expected, Stage 2 production commences earlier, both CESC and Valu tonnages increase by
       1mtpa in those earlier years.


Sydney
10 July 2013

JSE Sponsor:
Macquarie First South Capital (Proprietary) Limited


Contacts
Paul Jury, Managing Director on (02) 9376 9000 or
Steve Matthews, Company Secretary on (02) 9376 9000

Media enquiries
Anthony Tregoning (02) 8264 1000


Resource Generation Limited (ACN 059 950 337)             www.resgen.com.au
Level 12 Chifley Tower, 2 Chifley Square, Sydney NSW 2000
GPO Box 5490, Sydney NSW 2001. Phone +61 2 9376 9000 Fax +61 2 9376 9013
                                                                                                        1

Date: 10/07/2013 08:35:00 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             . The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.


                                        
Email this JSE Sens Item to a Friend.

Send e-mail to
© 2017 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.