| Wed 15 Dec 2010, 8:19 | | RES - Resource Generation secures second coal off-take contract |
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RSG
RSG
RES - Resource Generation secures second 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")
Resource Generation secures second coal off-take contract
Resgen has today signed a contract with Bhushan Steel Limited (Bhushan), which
will purchase coal for 20 years from Resource Generation`s Boikarabelo mine in
South Africa.
Under the terms of the contract, Bhushan (BSE:BHUSSTEEL IN), will purchase
500,000 tonnes of thermal coal per annum for the first five years of production
from the Boikarabelo mine and a minimum 500,000 tonnes per annum for a further
15 years. The price will be at international market prices at the time of each
shipment.
Bhushan is one of the fastest growing steel companies in India. Based in Delhi,
it has operations in Delhi, Orissa and Mumbai. Current primary steel making
capacity is around 2.5 million tonnes per annum, which is being expanded to 5
million tonnes per annum by October 2012. Bhushan`s sales revenue in the last
financial year was USD1.3 billion with a net profit of USD188 million. Its
market capitalisation is approximately USD2 billion.
Bhushan`s growth plan includes diversification into power generation through its
subsidiary, Bhushan Energy Limited, which already has installed capacity of
300MW. The supply of coal from Boikarabelo is targeted for the expansion of
Bhushan`s power generation capacity.
Paul Jury, managing director of Resource Generation, said: `This is the second
long term export contract demonstrating confidence in the quality of the
Boikarabelo mine as well as its potential into the expanding Indian market.`
Resource Generation`s planned Boikarabelo mine is in the Waterberg region of
South Africa, one of the country`s largest remaining coal deposits.
Sydney, Australia
15 December 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
Date: 15/12/2010 08:19:01 Produced by the JSE SENS Department.
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