RESOURCE GENERATION LIMITED - Contracts Executed for Boikarabelo Coal Mine Coal Handling and Preparation Plant (CHPP), Operations and Maintenance

Release Date: 01/08/2018 08:57
Code(s): RSG
 
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Contracts Executed for Boikarabelo Coal Mine Coal Handling and Preparation Plant (CHPP), Operations and Maintenance

    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
    (“Resource Generation” or the “Company”)
     1 August 2018
    ASX Announcement


         Contracts Executed for Boikarabelo Coal Mine Coal Handling and Preparation
               Plant (CHPP), Operations and Maintenance and Ancillary Works

    .       EPC contract for the design, procurement, construction and commissioning of CHPP
    .       EPC contract for operations and maintenance of CHPP
    .       EPC Ancillary Works contract


    Following the execution of a Heads of Agreement and Letter of Intent (ASX Announcement: 6 May
    2016) and subsequent progress reports referred to in earlier announcements, the operating
    subsidiary of Resource Generation Limited, Ledjadja Coal (Proprietary) Limited (LCL), has now
    executed three separate contracts with Sedgman (South Africa) (Proprietary) Limited and
    Sedgman Pty Limited (collectively Sedgman) for the Boikarabelo Coal Mine relating to the
    following:
    .       The engineering design, construction and commissioning of the CHPP
    .       The operations and maintenance for the CHPP; and
    .       The construction of ancillary works relating to the infrastructure of the mine
    Under the provisions of the CHPP contract, Sedgman will design, procure, construct and
    commission the CHPP for the processing of 15 million tons of raw coal per annum.
    Under the provisions of the Operations and Maintenance contract, Sedgman will operate and
    maintain the CHPP for 4 years post commissioning subject to strict performance criteria.
    Under the Ancillary Works contract, Sedgman will undertake construction of infrastructure
    associated with the CHPP and additional infrastructure including buildings, piping, electrical, water
    and drainage during the mine development phase.
    The value of the engineering design, construction and commissioning of the CHPP plant and the
    construction of the ancillary works infrastructure contracts is US$210 million and subject to
    exchange rate fluctuations and conditions precedent normal in contracts of this nature including
Resource Generation Australia (ACN 059 950 337)
c/o Level 1, 17 Station Road, Indooroopilly, QLD, 4068
GPO Box 126, Albion QLD 4010. Phone +27 (011) 010 6310 Fax +27 (086) 539 3792
Directors: Lulamile Xate (Chairman), Robert Croll, Dr. Konji Sebati,
Colin Gilligan, Leapeetswe Molotsane, Manish Dahiya, Peter Watson                            www.resgen.com.au
Acting CEO: Leapeetswe Molotsane
Company secretary: Mike Meintjes
successful completion and draw down of the project finance. The operations and maintenance
contract is for a duration of 4 years and is valued at US$100 million.
Papi Molotsane, Acting CEO of LCL, commented; “We are very pleased to have now executed
these important EPC contracts with Sedgman. Sedgman has successfully delivered coal projects
in Southern Africa and these contracts are in keeping with the execution strategy adopted by the
Board to minimise risk through the means of turn key lump sum solutions with reputable EPC
contractors and in parallel reduce the capital cost of the project”.
Sedgman Limited is a member of the CIMIC Group (ASX:CIM) and has successfully delivered
over 30 major coal projects over the last decade and 170 over the last 35 years.
The Company continues to engage with the proposed project development lenders as advised in
the June 2018 Quarterly Activities Report and will provide further updates in accordance with its
continuous disclosure obligations.


Lulamile Xate
Chairman
For and on behalf of the Board


About Resgen:

Resource Generation Limited (Resgen) is an emerging ASX and JSE-listed energy company,
currently developing the Boikarabelo Coal Mine in South Africa’s Waterberg region. The Waterberg
accounts for around 40% of the country’s currently known coal resources. The Coal Resources
and Reserves for the Boikarabelo Coal Mine, held through the operating subsidiary Ledjadja Coal,
were recently updated based upon a new mine plan and execution strategy. The Boikarabelo Coal
Resources total 995Mt and the Coal Reserves total 267Mt applying the JORC Code 2012 (ASX
Announcement :23 January 2017- In accordance with Listing Rule 5.23.2 the Company confirms
that it is not aware of any new information that would impact on the Reported Coal Resources and
Coal Reserves). Stage 1 of the mine development targets saleable coal production of 6 million
tonnes per annum. Ledjadja Coal is a Black Economic Empowerment subsidiary (BEE) operating
under South Africa’s Broad-based Black Economic Empowerment Act, Section 9(5): Codes of
Good Practice

ResGen’s primary shareholders are the Public Investment Corporation of South Africa (PIC), Noble
Group and Altius Investment Holdings.

For further information please contact:

Mike Meintjes, Company Secretary on mmeintjes@resgen.com.au or +61 413 706 143

Media enquiries:

South Africa: Marion Brower/ Charmane Russell on +27 11 880 3924

JSE Sponsor: Deloitte & Touche Sponsor Services (Pty) Ltd



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