Resgen secures port access but has funds hold up

RESOURCE Generation’s (Resgen) Boikarabelo project has signed a port access contract with Bulk Connections, the operator of a multi-purpose terminal at the Port of Durban.

Noel Dyson

Under the take or pay contract, Bulk Connections, which is part of the Bidvest Group, will allocate Boikarabelo enough stockpile capacity to ship coal at least once a week.

This will allow it to meet its Stage 1 export targets from early 2015.

Boikarabelo’s financing syndicate’s credit approval processes are taking longer than expected, due to a substantial backlog of other credit approvals.

It’s possible the approvals process will be further delayed due to festive season interruptions.

Resource Generation is working with the financing syndicate to try to obtain binding offers as soon as possible for the project finance of the Boikarabelo mine.

That syndicate is made up of Absa Capital, a member of the Barclays Bank Group; Caterpillar Financial SARL; FirstRand Bank; Hong Kong & Shanghai Banking Corporation; Nedbank Capital; and Standard Chartered bank.

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