| Thu 31 Mar 2011, 9:59 | | RSG - Resource Generation Limited - Resource Generation progresses plan to |
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RSG
RSG
RSG - Resource Generation Limited - Resource Generation progresses plan to
secure water for its Boikarabelo mine/Water treatment plant to benefit local
community
Resource Generation Limited
ACN 059 950 337
(Incorporated and registered in Australia)
(Registration number ACN 059 950 337)
Share code on the JSE Limited: RSG ISIN: AU000000RES1
Share code on the Australian Stock Exchange Limited: RES ISIN: AU000000RES1
("Resgen")
Resource Generation progresses plan to secure water for its Boikarabelo mine
Water treatment plant to benefit local community
Resource Generation Limited, which is developing one of South Africa`s largest
remaining coal deposits, reports significant progress with securing the water
that will be needed for its proposed Boikarabelo mine.
The company has been chosen as the preferred party to construct, operate and
maintain a wastewater treatment plant at Marapong, approximately 50 kilometres
from Boikarabelo. The plant will treat municipal effluent and is expected to
generate up to 16 megalitres of water per day, which will be pumped to the mine
site via a new pipeline. The cost of the plant is already included in the $552
million capital expenditure budget for the mine`s development.
Resource Generation has been working for 18 months with the Lephalale Local
Municipality in Limpopo Province on plans for the plant. This is a key
responsibility that the company has committed to undertake as part of its social
and labour plan, which has been submitted with its Mining Right Application for
the Boikarabelo mine.
Ceenex, an international engineering firm with substantial experience of the
water sector, is advising on the project. Before construction begins, Resource
Generation and the municipality are required to obtain government approval and
finalise contractual arrangements.
Sufficient water for stage 1 of the mine is available from groundwater boreholes
on the mine properties that the company already owns. Use is subject to
receiving an Integrated Water Use Licence which was applied for in January 2011.
Paul Jury, Resource Generation`s managing director, said: `This is another
significant step in the development of our Boikarabelo mine. The plant will
provide sufficient water to meet the medium- and long-term needs of the mine,
including after its stage 2 expansion, and importantly it will also provide the
local municipality with essential infrastructure and environmental protection.
This is the first of many activities we will be undertaking for the Limpopo
community.`
Sydney, Australia
31 March 2011
Contacts
Paul Jury, Managing Director on (02) 9376 9000 or
Steve Matthews, Company Secretary on (02) 9376 9000
Media enquiries
Anthony Tregoning (02) 8264 1000
Sponsor
Deloitte & Touche Sponsor Services (Pty) Limited
Date: 31/03/2011 09:59:01 Produced by the JSE SENS Department.
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