Resgen spent millions on exploration

[] — RESOURCE Generation (Resgen), the Australian company with a secondary listing on the JSE, on Monday said it spent A$2.4 million on exploration and evaluation this year to date.

The June quarter saw the company spend A$813 000, the company said in a quarterly report.

Resgen, which started trading on the JSE earlier this month, is planning a new R4.5bn coal mine in the Waterberg region of Limpopo.

The mine is expected to provide about 811 direct jobs and 500 indirect jobs.

Production at the mine, which is in immediate vicinity to the construction of Eskom’s Medupi power station and existing Matimba power station, is forecast to commence in January 2013.

According to the company’s pre-lisiting statement, the mine will produce about 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.

Resgen said progress was being made on its mining rights application, which has reached the stage when public consultation is underway on the environmental management plan.

During the June quarter the company obtained approval from the Department of Mineral Resources to increase Resource Generation’s shareholding in Boikarabelo’s Ledjadja tenements to 74%.

In the meantime, the company has initiated discussions with Transnet regarding access to its rail network to provide transport to east coast ports.

“Pending possible construction of a branch line, initial production will be transported by truck 45 km to existing rail infrastructure,” Resgen said.