Resource Generation lists on the JSE

July 14, 2010


Johannesburg, 14 July 2010 – Today, Australian miner Resource Generation Limited comes one step closer to developing its Boikarabelo project by listing on the Johannesburg Stock Exchange (JSE). This will enable the company to raise capital in South Africa and ensure that local investors will benefit from the large-scale mining project.

Paul Jury, Managing Director of Resource Generation Limited, which has a primary listing on the Australian Stock Exchange (ASX) said: “The aim of the listing is to provide the company with greater flexibility when raising finance. We and our BEE partners are very pleased that this listing will ultimately allow South African investors to benefit from the development of their country’s natural wealth.” The miner has over 90% of its assets in South Africa. The company also has coal interests in Australia and uranium interests in Cameroon.

Situated in the Waterberg region of Limpopo, Resource Generation’s Boikarabelo tenements have probable saleable reserves of 603.3 million tonnes of coal, an indicated resource of 569.5 million tonnes, plus an inferred resource of 1.7 billion tonnes. These figures are expected to increase following further drilling.

The Waterberg coalfield contains 40% of South African’s remaining coal resource, the major portion of which is of a high quality grade. South Africa is expected to consume 269 million tonnes of coal per annum by 2018 to meet its growing energy requirements. “With supplies from coal fields in Mpumalanga and Kwa-Zulu Natal declining, the coal from this region will greatly assist South Africa in meetings its energy and development targets,” adds Jury.

It is estimated that the mine will produce 3 million tonnes per annum of export quality coal and 3 million tonnes of domestic quality coal for the first five years from 2013. The second stage from 2018 would increase production to 40 million tonnes of run-of-mine coal per annum.

A pre-feasibility study confirms the potential for profitable mining operations. The mining rights application was lodged in February 2010. Production is currently scheduled to start in January 2013. The initial mine investment is R4,5 billion.

The open cut mine is in immediate vicinity to the construction of Eskom’s large-scale power station Medupi and existing power station Matimba. The mine is also only a short distance away from the rail link to South Africa's coal ports. Resource Generation Limited will contribute an estimated R2.5 billion towards the development of rail and associated infrastructure.

The mine is expected to provide annual employment and skills development in the depressed Waterberg region with an estimated 811 direct jobs and 500 indirect jobs. The Limpopo province, alongside the Eastern Cape and the Free State, is one of the poorest in South Africa. The life of the mine could be up to 100 years.

For more information please contact:
Victoria Williams
Corporate Communications Consultants (Pty) Ltd
Tel: 00 27 11 463 2198
Cell: 00 27 72 452 1772
Email: victoria@corpcom.co.za 

On behalf of:

Paul Jury
Managing Director
Resource Generation Limited

About Resource Generation Limited
Resource Generation is a public company listed on the Australian Stock Exchange, and is a new energy resources company specialising in the development of major energy related resources. Resource Generation has a geographically diverse portfolio of high grade resource deposits with a defined program of work in place to develop these into operating mines. The company has mining interests in Australia, South Africa and Cameroon. For more information about the company please visit www.resgen.com.au