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Grid power reduces mine development project by R1.01B

According to ESI-Africa, Australian resource development group Resource Generation Limited (Resgen), which is developing the Boikarabelo coal project in South Africa's Limpopo province, has seen the capital cost of the venture's planned 45MW power station reduced by R1.01B due to the availability of grid power. The project's estimated capital cost has been reduced to R53.4B.

4 Sep 2012

"Subject to securing debt funding, the capital saving will reduce the amount of equity funds required," Resgen managing director, Paul Jury says. The company's target of beginning coal production early in 2015 will be met, should South African power utility Eskom make good on its commitment to supply sufficient power for stage one of the mine's operation after the first generating unit at its new Medupi power station becomes commercially operational, by 2014, ESI-Africa reports.

Read the full article on www.esi-africa.com.