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US$120 million reduction in Boikarabelo capex
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”)
ASX Release
US$120 million reduction in Boikarabelo capex
Resgen has been able to reduce the estimated capital cost of its
Boikarabelo coal mine in South Africa by US$120 million to US$630 million. This
reflects the flexibility provided by Eskom’s commitment to supply sufficient power for
stage 1 of the mine’s operation as early as 2014, after the first generating unit at its new
Medupi power station is in commercial operation. This will meet the company’s target of
beginning coal production early in 2015.
The cost of Boikarabelo’s planned 45MW power station, for which tenders have been
received, has been removed from the capital expenditure estimate for stage 1 of
Boikarabelo’s operations. A decision on whether to proceed with this will now not take
place until 2013.
Paul Jury, managing director, said: ‘this development provides a positive step in
simplifying the funding and construction phases of stage 1 of the Boikarabelo mine.
Importantly, subject to securing debt funding, the capital saving will reduce the amount
of equity funds required.’
Sydney
23 August 2012
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 is developing the Boikarabelo coal mine in the Waterberg
region of South Africa where there are probable reserves of 744.8 million tonnes of
coal on 35% of the tenements under its control. Stage 1 of the mine development
targets saleable coal production of 6 million tonnes per annum.
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
Date: 23/08/2012 09:14:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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