Coal producer Resource Generation’s (Resgen) subsidiary Ledjadja Coal has secured ZAR5.52bn ($403m) to complete construction of the Boikarabelo coal mine in Limpopo, South Africa.
Ledjadja Coal agreed on the commercial terms with FirstRand Bank, Industrial Development Corporation of South Africa; Public Investment and Noble Resources International.
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Resgen CEO Rob Lowe said: “This is an extremely important milestone towards the construction and commissioning of the mine, which will be the second largest in the Waterberg region and will have a marked impact on the opening up of the Waterberg coal field.
“Transnet Freight Rail has also worked supportively with us in order to develop a viable logistics solution for the transportation of our domestic and export coal production.
“This is a major contribution towards the realisation of Strategic Infrastructure Project (SIP 1) under the National Development Plan, by providing for the unlocking of the northern mineral belt using the Waterberg as a catalyst.”
Noble is also providing a cost overrun facility, in addition to a portion of the other debt.
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By GlobalDataCredit approval and the closing of financial agreements is scheduled for the end of October, while the mine’s construction is slated for completion by September 2018.
