| Tue 14 Sep 2010, 9:18 | | RSG - Resource Generation secures first coal off-take contract |
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RESGEN
RSG
RSG - Resource Generation secures first coal off-take contract
Resource Generation Limited
Registration number ACN 059 950 337
(Incorporated and registered in Australia)
Share code on the JSE Limited: RSG
Share code on the Australian Stock Exchange: RES
ISIN Code: AU000000RES1
("Resgen" or "the Company")
JSE Release
Resource Generation secures first coal off-take contract
Resource Generation Limited (ASX:RES) has today signed a contract with
Integrated Coal Mining Limited ("Integrated Coal Mining"), part of the RPG
Group, whereby Integrated Coal Mining will purchase coal for 20 years from
Resgen`s Boikarabelo mine in South Africa and will subscribe $10.5 million for
a 10 per cent shareholding in Resgen.
Under the terms of the contract, Integrated Coal Mining, on behalf of its
affiliated company CESC Limited (BSE:CESC IN), will purchase one million tonnes
of thermal coal per annum for three years and two million tonnes per annum for a
further 17 years. These purchases will begin when the Boikarabelo mine commences
production, which currently is scheduled for early 2013. The price will be
agreed annually based on the international benchmark price at the time.
Resource Generation has agreed to place 18,268,053 shares with Integrated Coal
Mining at a share price of $0.575.
Integrated Coal Mining and CESC are both parts of the RPG Group, one of India`s
most respected industrial groups. CESC is India`s third largest power utility,
with a current installed generating capacity of 1225 MW serving nearly 2.5
million consumers across the twin cities of Kolkata and Howrah. Its published
growth plan envisages an increase in its installed generating capacity to 5745
MW. Founded in 1899, the company introduced thermal power to India.
The RPG Group is a diversified industrial group with a market capitalisation of
approximately $US3.0 billion and annual revenue of approximately $US3.5 billion.
Paul Jury, managing director of Resgen, said: `This is a major step in our plan
to establish our Boikarabelo mine as a significant supplier of coal to both
export and South African domestic markets. It represents a vote of confidence by
CESC in Boikarabelo`s potential, and positions us to sell increasing quantities
of coal as CESC`s generating capacity grows.`
Resgen`s planned Boikarabelo mine is in the Waterberg region of South Africa,
one of the country`s largest remaining coal deposits.
Sydney, Australia
14 September 2010
Contacts
Paul Jury, Managing Director on +61 2 9376 9000 or
Steve Matthews, Company Secretary on + 61 2 9376 9000
Sponsor: Deloitte & Touche Sponsor Services (Pty) Ltd
Resource Generation has coal interests in South Africa and Tasmania. Its
current priority is to develop its resources in the Waterberg region of South
Africa.
Date: 14/09/2010 09:18:01 Produced by the JSE SENS Department.
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