Resource Generation (Resgen) subsidiary, Ledjadja Coal, has agreed the commercial terms with a syndicate of lenders to secure funding for the construction of the Boikarabelo coal mine. Members of the financing syndicate will now seek their requisite approvals to release the funds worth AUS$515 million.
“This is an extremely important milestone towards the construction and commissioning of the mine,” said Resgen and Ledjadja CEO, Rob Lowe. This mine will be second largest in the Waterberg region of South Africa, and “will have a marked impact on the opening up of the Waterberg Coalfield,” Lowe continued.
The financing syndicate includes Rand Merchant Bank, a division of FirstRand Bank, one of the largest financial services companies in South Africa, and global commodities trading house, Noble Group, through its subsidiary, Noble Resources International, as well as two large development funding institutions, Public Investment Corp. SOC Ltd and Industrial Development Corp. of South Africa Ltd.
“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,” said Lowe.
Credit approval and financial close of the funding arrangement is targeted by the end of October. Construction at the mine is expected to be completed by September 2018 with production of the first saleable coal in 4Q16.
Unlocking the northern mineral belt of South Africa – which includes the Waterberg Coalfield – forms a part of the National Development Plan. The Waterberg region accounts for around 40% of South Africa’s known coal resources with Ledjadja Coal reporting probable reserves of 744.8 million t.
Edited by Jonathan Rowland.
Read the article online at: https://www.globalminingreview.com/exploration-development/08082016/funding-terms-for-boikarabelo-mine-agreed-2016-2177/