Resource Generation secures $406m for Limpopo coal mine

Resource Generation secures $406m for Limpopo coal mine

Coal miner Resource Generation (ASX:RES) has secured US$406 million to complete construction of the Boikarabelo coal mine in Limpopo, South Africa.

Ledjadja Coal, a subsidiary of Resgen, has agreed on the commercial terms with a financial syndicate to secure the funding.

The funding from FirstRand Bank, the Industrial Development Corporation, state-owned Public Investment Corporation and Noble Resrouces International is expected to provide the remainder of the total funds needed to complete the construction.

Credit approval and financial close is expected for the end of October, with construction planned to be completed by September 2018.

Rob Lowe, Resgen CEO said this is an “extremely important” milestone in the construction and commissioning of the mine, which will be the second-largest mine in the Waterberg region.

“The support that we have received has been very pleasing,” said Lowe. “Transnet Freight Rail has also worked supportively with us to develop a viable logistics solution for the transportation of our domestic and export coal production.”