Few people have had more first-hand experience of being thwarted around every bend and corner by the inadequacies of South Africa’s infrastructure than Paul Jury, the managing director of coal miner Resource Generation (ResGen). The company ranks among those junior miners that have their sights on opening up the coal fields in the Limpopo Province’s Waterberg.The company recorded mixed successes in 2011 in advancing its six mil- lion tonne per year (Mt) Boikarabelo project. On the positive side, it secured water – a scarce commodity in the waterless Waterberg region – from the Lephalale Local Municipality for Stage 2 of the project. However, some loose ends to its Memorandum of Understanding with Transnet Freight Rail on a haulage agreement means ResGen is unable to raise the finance necessary for the go-ahead of the project.Jury,ever the optimist, said a solid agreement should be in place within months.“It is pleasing that we have been able to complete this first step in working with Transnet to open up the Waterberg coalfields,” he said. It remains to be seen how these delays would impact ResGen’s production deadline of 2014.The company also has a lucrative marketing agreement to meet, after it signed a $16bn coal agreement with India’s Integrated Coal Mining, for the supply of some 138Mt of coal from Boikarabelo.
LIFE OF PAUL: Jury has worked in the coal mining business for over 25 years, including stints as head bean counter at Coal & Allied Indus- tries, as well as Coal Mines Australia and Oceanic Coal Australia. He was MD of Resource Pacific Holdings.
Not long now boys!!
RES Price at posting:
31.0¢ Sentiment: Hold Disclosure: Held
