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.
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.
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:
Corporate Communications Consultants (Pty) Ltd
Tel: 00 27 11
Cell: 00 27 72 452 1772
About Resource Generation Limited
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