RESOURCE GENERATION LIMITED - Project UpdateRelease Date: 02/07/2014 09:52:00 Code(s): RSG
Resource Generation Limited
Registered in Australia under the Corporations Act, 2001 (Cth) with
registration number ACN: 059 950 337
Share Code on the ASX: RES
Share Code on the JSE: RSG
("Resgen" or "the Company")
One of the contractors at the Boikarabelo mine, Protech Kuthele (Pty) Limited (PK), has
notified Resource Generation that it has applied to court to terminate its business rescue
proceedings and be placed in liquidation. PK was undertaking the earthworks for the rail
link, the site infrastructure and the roads. It has removed all staff from the mine site and
terminated all activities. Addressing this unforeseen development is expected to delay
the completion of the project by three to six months, with first coal production now
estimated for the first half of 2016. Based on the previous competitive tender process,
Resource Generation does not expect any difficulty in appointing an alternative
earthworks contractor for a similar cost.
Funding negotiations still continue with proposed debt financiers of the mobile
equipment, the coal handling and preparation plant and the rest of the site infrastructure.
2 July 2014
Macquarie First South Capital Proprietary Limited
Paul Jury, Managing Director on (02) 9376 9000 or
Steve Matthews, Company Secretary on (02) 9376 9000
Anthony Tregoning (02) 8264 1000
Resource Generation is developing the Boikarabelo coal mine in the Waterberg
region of South Africa, which accounts for 40% of the country?s remaining coal
resources. There are probable reserves of 744.8 million tonnes of coal on 35% of
the tenements under the company?s control (refer ASX announcement dated
16 December 2010). Stage 1 of the mine development targets saleable coal
production of 6 million tonnes per annum.
Date: 02/07/2014 09:52:00 Supplied by www.sharenet.co.za
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