ResGen’s Lephalale power station plans delayed

LEPHALALE - Resource Generation Limited’s plans to build a 45 MW power station to supply power to stage one of its Boikarabelo mine just outside Lephalale have been placed on hold.
This after Eskom agreed to supply sufficient power for stage one of the mine’s operation as early as 2014 after the first generating unit at its new Medupi power station is in commercial operation. This will meet the company’s target of beginning coal production early in 2015.
ResGen announced on Wednesday that the cost of Boikarabelo’s planned 45MW power station, for which tenders have been received, has been removed from the capital expenditure estimate for stage one of Boikarabelo’s operations. The company has therefore been able to reduce the estimated capital cost of its Boikarabelo coal mine in the Waterberg by R960 million. 
Paul Jury, managing director, said: “This development provides a positive step in simplifying the funding and construction phases of stage one of the Boikarabelo mine. Importantly, subject to securing debt funding, the capital saving will reduce the amount of equity funds required.”
A decision on whether to proceed with the building of the 45 MW power station will now not take place until 2013.