Australia’s Resource Generation (Resgen), described as a prominent new coal player on the Johannesburg Stock Exchange, is involved in ambitious schemes including raising R2.5 billion to help fund new rail lines. The group plans to construct a large new coal mine in the Waterberg, close to the Botswana border. The likely start-up cost would be in the region of R6 billion.
The objective is to produce 3 million tons annually (mta) of coal for sale to Eskom from 2013 and another 3 million tons for export, “with strong interest from India and China.” That is in phase one. Phase two will see production reaching 40mta by 2018.
Rail connections are envisaged to move the coal to Eskom power stations and to the coast, both Matola in Mozambique and Richards Bay being possibilities.
Resgen CE Paul Jury is quoted saying: “We are not trying to tackle this in any small way,” and explaining that “We’re in discussions with Transnet, taking them solutions, rather than waiting for them to find solutions”. The group is to contribute R4m to the current surveying of a rail route from eastern Botswana to the Atlantic coast in Namibia. CIC Energy is involved in this project, to export coal from its own Mmamabula mine in Botswana. However, Jury told the press, Resgen is prepared to put up “at least” R2.5 billion towards additional rail infrastructure in South Africa.

Original article [Railways Africa]