Resource Generation on track

RESOURCE Generation is on track to start production in January 2013 following lodgement of a mining rights application for its Boikarabelo mine in South Africa.

Angie Tomlinson

The company said the South African Department of Mines & Energy normally took about 12 months to award mining rights.

The Boikarabelo tenements, in the Waterberg region, have probable saleable reserves of 603 million tonnes, an indicated resource of 570Mt and an inferred resource of 1.7 billion tonnes.

Resource Generation expects to increase resources following further drilling.

“Lodgement of the mining rights application is an important step forward in our plan to develop a large-scale coal mining operation,” managing director Paul Jury said.

“We have already completed a prefeasibility study for the mine, and we are now concentrating on coal offtake and transport options and on finalising the necessary infrastructure. When these plans are complete, we will progress funding alternatives, with the aim of starting construction when we receive mining rights.”

Resource Generation was trading steady today at A38.5c.