Resource Generation has signed a contract with the Lephalale Local Municipality (LLM) to build a wastewater treatment plant in Limpopo Province, South Africa.
Under the terms of the agreement, Resource Generation will build, operate and maintain a wastewater treatment facility at Marapong for the Boikarabelo mine site.
The plant will treat municipal effluent water and produce 16Ml a day.
The treated water will be pumped to stage two of the firm's planned Boikarabelo mine site through a new pipeline.
Stage one of the mine will secure sufficient liquid from groundwater boreholes on the company's mine properties.
Paul Jury, Resource Generation managing director, said adequate water will be provided by the plant to meet the medium and long-term needs of the mine.
Resource Generation and LLM have been collaborating for two years on plans for the facility, which will provide LLM with essential infrastructure.
The term of the agreement is 30 years and is subject to the satisfying of a number of conditions.
Resource Generation will pay for the Marapong wastewater treatment plant upgrade works and expansion works to extend capacity to 4Ml a day by January 2014, increasing to a daily 16Ml by January 2017.
The company will also build the Marapong-Boikarabelo effluent transfer pump station and associated works including the transfer pipeline.
The treatment plant will run by Resource Generation after the expansion at its own cost until the operations transfer date, which is one year after completion of the expansion works.
After the transfer date, LLM will oversee the management, operation and maintenance of the facility.
