Sibanye discusses IPP goals with Resgen

Sibanye discusses IPP goals with Resgen

Sibanye Gold (JSE:SGL) has focused its view on Resource Generation (ASX:RES) as it searches for a co-partner to accomplish its independent power producer (IPP) goals.

Resgen, the dual-listed coal development firm is now in talks with a ‘debt club’ including the Industrial Development Corporation, the Public Investment Corporation and Rand Merchant Bank to finance the proposed six million tonne/year coal mining project Boikarabelo, in the Limpopo province in South Africa.

While Resgen CEO Rob Lowe declined to comment on the Sibanye link, he recently told RGN that the company are planning to build an IPP at Boikarabeloas as it looks to become an energy provider.

James Wellsted, Sibanye’s head of corporate affairs, said “We have looked and continue to asses a number of different coal opportunities which, if reaching an appropriate stage of engagement, will be announced as required by the JSE.”

Sibanye recently concluded takeover negotiations with Waterberg Coal Company, which is trying to fund the expansion of a domestic and export coal mining possibility named Waterberg Coal Joint Venture.

A piece of Boikarabelo’s production is export standard that will be sold through a shareholder. The project already has a domestic offtake contract with Noble Group, who own 13 per cent of Resource Generation.

Boikarabelo may be expanded to manufacture over 20mtpa in its second phase, established on studies by the firm’s previous management.

@RGNonline