ResGen managing director Paul Jury said the company received an integrated water use licence governing all aspects of water use at the mine which would enable it to conduct all activities for stage 1 of planned production and to utilise its borefield.

The Boikarabelo mine has probable reserves of 744.8 million tonnes of coal on 35% of the tenements under the company’s control.

Stage 1 of the mine development targets saleable coal production of 6 million tonnes per annum.

“The integrated water use licence is the last piece of the regulatory jigsaw puzzle required for mine construction and commencement of stage 1 production to proceed,” Jury said.

The Department of Mineral Resources also advised company subsidiary Ledjadja the appeal against its mining right had been dismissed and finalised.

“Removal of the mining right appeal establishes a clear path to securing funds for project construction,” Jury said.

“It is pleasing that the Boikarabelo project has now received support from all major regulatory bodies, signifying the benefit that this major project brings to the Limpopo region of South Africa.”

Ledjadja acknowledged the assistance and cooperation of the Department of Water Affairs in issuing the water licence.

“Ledjadja looks forward to working with the department to obtain the licences required for development of the Marapong Boikarabelo effluent treatment scheme and the Boikarabelo mine power station”, the company said.

An agreement for the MBET scheme was previously signed with the Lephalale local municipality in Limpopo province, securing the water required for stage 2 of planned production.

“Completion of a rail haulage contract with Transnet is the remaining major hurdle to enable Resource Generation to finalise funding for project development,” Jury said.