Boikarabelo coal Mine(RES)1.Description The Boikarabelo coal...

Boikarabelo coal Mine(RES)

1.Description The Boikarabelo coal project is located in the Waterberg area of the Limpopo Province. Boikarabelo has probable reserves of 744.8 million tonnes of coal - an increase of 108.8 million tonnes, making it one of the largest remaining coal deposits in the country. The Boikarabelo coal seam is between 20 metres and 30 metres below the surface, enabling low-cost, open-cut mining. The seam is between 120 metres and 130 metres thick, with zones of varying quality thermal and soft-coking coal. Phase 2, planned for 2018, will involve ramping up production to 20 million tons of product coal. The estimated first stage costs of the mine will be higher than initially expected, at $750 million.

2.Value R 100 million+
3.Status Design
4.Sector Private
5.Class Invited / Negotiated.
6.Type Mining
7.Region Limpopo
8.Timing 2012 onwards.


2012/04/10 Construction of the mine is targted to start in the third quarter of 2012, taking about 24 months to complete. First production has been delayed to the third quarter of 2014.

2012/03/23 The project has received Environmental Authorisation and the mining right has been granted.

2012/02/07 The statutory appeal process, which was lodged with the Department of Mineral Resources for a 30-year mining right, is under way. The second environmental-impact assessment (EIA), which has delayed the expected National Environmental Management Act approval, is expected in early 2012. The application for an integrated water use licence has also progressed to a mature stage. In addition, an agreement has been signed with the Lephalale local municipality (LLM), which will secure the water required for Stage 2 of the company’s planned Boikarabelo mine. The EIA for Stage 2 is expected to be completed by February 2013. ResGen will pay for the Marapong wastewater treatment plant upgrade works and expansion works. Further, five large diameter core holes have been drilled on the Kalkpa property, which will be the start of the Boikarabelo opencut mine. A sixth hole is due to be completed this month.

2011/11/11 Resource Generation has signed a Memorandum of Understanding (MoU) with Transnet Freight Rail regarding coal haulage for the mine. Transnet has agreed to haul coal on a take-or-pay basis starting with four million tons in the year starting July 1, 2014.

2011/10/06 The project is currently in the EIA phase for the three Applications: NEMA and NEMWA (main mining activities and proposed railway link). The Draft EIA EMP Report (NEMA and NEMWA) has been compiled and is available for public review and comment. In addition, a public meeting will be held on 29 October 2011 to present the findings of the EIA. The Draft EIA EMP Reports will be updated with all comments received from the initial Scoping phase and public meeting and finalised for submission to DEA and LEDET after which environmental authorisation is expected to be granted at a date still to be confirmed by the authorities.
2011/09/21 The reluctance of Transnet Freight Rail (TFR) to commit to a haulage contract with Resource Generation (Resgen) is delaying the start-up date of its Boikarabelo coal mine in the Waterberg. First production at Boikarabelo was initially targeted for late 2013, but would now be delayed until the first half of 2014, assuming a contract was agreed by the end of 2011 and funding was obtained. Detailed mining and engineering plans showed that the estimated first stage cost of the mine would be higher than initially anticipated at $750-million.

2011/08/29 Initially, Resource Generation had signed an offtake agreement with the RPG unit for 37-million tons over 20 years. The initial offtake in the deal has increased to 73-million, and will start when the Boikarabelo mine starts production in 2013. The balance of the additional offtake of 66-million tons will begin after the mine’s second stage of expansion.

2011/08/29 Three individuals whose farms are located in the area of the proposed Boikarabelo mine site, the nearest being 13 km away, have lodged an appeal with the DMR, with regard to the recently awarded 30-year mining right. ResGen has said that the objections are of a general nature, and substantially the same as those lodged by the same parties during the public consultation phase of the mining right. The company remains confident that the mining right will be confirmed at the end of the statutory process and will continue its normal activities to develop the mine. Construction of the mine is targeted to start by the last quarter of 2011, taking about 24 months to complete. The mine is targeted to begin production in late 2013.

2011/07/26 Resource Generation (Resgen) has been granted a 30-year mining right for the Boikarabelo mine. The application for an integrated water use licence is expected in the third quarter of 2011. Arrangements for main power supply from Eskom continue, but power for mine construction has been secured from existing supply to properties associated with the project, while production stages would be supplied through a fluidised bed power station at the mine site. Final engineering designs for the mine infrastructure and the rail link have been completed and final designs of the coal handling and preparation plant are expected at the end of July.

2011/06/08 Resource Generation has effectively signed a $16bn coal supply agreement with India’s Integrated Coal Mining, a unit of the RPG Group. This means some 139 million tonnes (mt) of coal will be supplied by Resource Generation’s Boikarabelo thermal coal mine, under development in the Waterberg. Boikarabelo, perhaps the last of the large thermal mines in South Africa, is expected to start production in late 2013 and will supply 73 mt over the life of its first phase. The second phase will supply the balance of 66 mt to RPG.

2011/06/07 Resgen has announced that it has received strong interest from financiers to fund the construction of it Boikarabelo mine. Resgen indicated that it intended to raised an intial R4.5 billion in project financing, which would consist of 60% debt and 40% equity finance.

2011/06/03 Arrangements continued to progress with Eskom regarding the power supply requirements of the Boikarabelo mine. The company is also undertaking an environmental impact study for a potential independent power supply option at the mine site. Progress with Transnet Discussions continued with Transnet Freight Rail regarding the transport of 6mtpa of export and domestic coal from late 2013.

2011/04/26 Resource Generation (Resgen) has received a 30 year mining right to develop its Boikarabelo coal mine. The application for the mining right was lodged with the DMR in February 2010 and they plan to start production as early as 2013. Regen would also embark on a water treatment plant