The company said the news came after it received credit-approved offers of project finance that deviated from an agreed terms sheet.

The credit approvals received from Resource Generation’s mandated debt financiers included commercial conditions which were unacceptable to the company.

Negotiations continued with the existing financiers but Resource Generation said it was looking at other options.

Resource Generation managing director Paul Jury said seeking alternative funding was important for the company’s financial flexibility.

"Without contingencies and costs associated with debt funding, capital expenditure is estimated at $530 million, which includes $100 million for mobile equipment,” Jury said.

“If we secure finance from alternative sources to part-fund this expenditure, the company will have flexibility to raise the remaining capital required to complete construction of the mine by way of equity or debt at a later time.”

"The due diligence conducted by independent experts on behalf of the financiers identified no material issues and I believe the credit-approved offers of finance confirm Boikarabelo's viability and potential.

“All regulatory approvals have been received, the land for the mine and rail link has been acquired and we have contracts providing rail haulage and port access.

“In addition, we have three significant export contracts for thermal coal with major Indian customers and the global trader Noble Group.”

Significantly, with construction of site infrastructure, roadworks and water and power connections beginning, the site is classified as an operating minesite.

The Boikarabelo mine in the Waterberg region of South Africa has probable reserves of 744.8 million tonnes of coal on 35% of the company’s tenements.