Under the MOU, which was signed in the December 2011 quarter, TFR will haul 4 million tonnes per annum commencing July 1, 2014, 5Mtpa starting from July 1, 2015 and 6Mtpa from July 1, 2016.
Half of the coal is expected to be hauled to export ports while the remaining 50% would be hauled to the Mpumalanga Highveld.
Resource Generation said the haulage agreement was subject to a number of events, including commencing production at Boikarabelo and completing the rail link from Boikarabelo to the existing network.
The agreement is also conditional on TFR completing its Waterberg feasibility study aimed at unlocking a potential haulage capacity of 22.5Mtpa from Waterberg and formal allocation of capacity by TFR.
During the quarter, Resource Generation drilled five coreholes on the Kalkpan property, which the company says will be the starting point for the Boikarabelo open cut mine pit.
A sixth hole is due to be completed in February.
Resource Generation said the major highlight for the December 2011 quarter was signing an agreement with the Lephalale local municipality to secure the water required for stage 2 of the Boikarabelo mine development.
Under the contract, the company will construct, operate and maintain a wastewater treatment plant at Marapong, approximately 50km from Boikarabelo.
It will treat municipal effluent and generate up to 16 megalitres per day of water, which will be pumped to the minesite via a new pipeline.
The Boikarabelo coal mine is located in South Africa’s Waterberg region, which hosts one of the country’s largest remaining coal deposits.
Resource Generation said the Boikarabelo mine had probable reserves of 744.8Mt of coal on 35% of the tenements it owned.
