Resource Generation Limited (RES), which is developing one of South Africa’s largest remaining coal deposits, has signed an agreement with the Lephalale Local Municipality (LLM) in Limpopo Province which will secure the water required for stage 2 of the company’s planned Boikarabelo mine. Under the contract, which is subject to a number of conditions, the company will construct, operate and maintain a wastewater treatment plant at Marapong, approximately 50 kilometres from Boikarabelo. This will treat municipal effluent and generate up to 16 megalitres of water per day, which will be pumped to the mine site via a new pipeline. Resource Generation has been working with LLM for two years on plans for the plant, which will provide LLM with essential infrastructure.
Paul Jury, Resource Generation’s managing director, said: ‘This agreement, which follows two years’ cooperative work with LLM, 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 the stage 2 expansion; 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.’
The term of the agreement is 30 years from the date of grant of the water use licence by the Department of Water Affairs, subject to satisfaction of a number of conditions. The conditions include an environmental impact assessment being approved by relevant government departments by 28 February 2013, sufficient power supply being secured by LMM, and all other required government approvals (including NEMA approval) being obtained by 28 February 2013. An extension of time is possible should delays be experienced.
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