EUR480m funding for Boikarabelo mine

LEPHALALE - Resource Generation Limited (ResGen), which is planning to mine one of SA's largest remaining coal deposits outside Lephalale, has received a signed Memorandum of Understanding from HAB & JPR Privée, a Swiss private company, to provide in principle funding of EUR480-million to enable construction of Boikarabelo mine.
HAB & JPR Privée has indicated that if there is a change of directors it reserves the right to cancel the loan facility. This follows the decision by Altius Investment Holdings, an associate of Noble Group, to requisition a general meeting to replace ResGen's board with its own nominees. Altius has been working with Noble Group to structure debt funding, as part of a club of SA financiers, that would result in a substantial transfer of value from the company’s shareholders and its BEE partner to the financiers.
Resgen MD Paul Jury said: ‘We are pleased, after a protracted process of seeking funding in a difficult market for coal projects, to have achieved in principle agreement for funding to enable all the remaining phases of the mine construction and its social labour programs to be completed.”
HAB & JPR Privée's decision to fund construction of the Boikarabelo mine has been driven by its desire to work with ResGen which it sees as a company that is socially responsible, attentive to the environmental impact of its projects and sensitive to the local community, as well as observing the highest health and safety standards to protect its workers and the general population.