[miningmx.com] – SYDNEY and Johannesburg-listed coal development firm, Resource Generation (Resgen), said its Boikarabelo project in South Africa’s Limpopo province would be delayed by up to six months after contractor Protech Kuthele went into business rescue proceedings.
“Addressing this unforeseen development is expected to delay the completion of the project by three to six months, with first coal production now estimated for the first half of 2016,” the company said in an announcement.
“Based on the previous competitive tender process, Resource Generation does not expect any difficulty in appointing an alternative earthworks contractor for a similar cost,” it said. Protech Kuthele was responsible for site infrastructure and the roads.
“Funding negotiations still continue with proposed debt financiers of the mobile equipment, the coal handling and preparation plant and the rest of the site infrastructure,” the company said.
