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Hong Kong-based trader Noble Group has agreed to lend South African miner Resource Generation US$65mn to develop its Boikarabelo coal project in the country’s Waterberg area
The US$480mn Boikarabelo project operated by the Australian-listed miner has been scheduled to commence production in 2015. It is touted to have an initial output of six million tonnes.
According to newspaper, The Australian, Resource Generation managing director Paul Jury said, “Completing these loan arrangements removes the remaining major gap in our funding plans.”
Recently, Resource Generation announced that it would also procure a US$55.3mn loan from Noble for constructing a rail link from the Boikarabelo mine to the existing transnet freight rail network.
The company is still discussing with potential investors for financing a coal handling and preparation plant onsite the Boikarabelo project.
“Once these remaining discussions are complete, the main funding for the construction of Boikarabelo will be in place,” said Jury.