With the five years term loan facility, the company plans to purchase the equipment from Komatsu Southern Africa.

The loan is subject to a sale agreement and registration of security for the equipment as well as signing of the balance of the debt required for the project.

Resource Generation managing director Paul Jury said: "This agreement represents several important elements for the project.

"It not only secures the funding required for the mining fleet for stage one of the Boikarabelo Mine development but also establishes a key partnership for further mine expansion to occur.

"The transaction clears the way for final infrastructure designs and refines training and maintenance processes. In addition it provides clarity in relation to negotiations for remaining debt."

The Boikarabelo mine is said to account for 40% of the country’s remaining coal resources. Stage 1 of the project is expected to produce six million ton a year.

In July, the company delayed work on the mine by three to six months to the first half of 2016 after contractor Protech Kuthele (PK), which oversees earthworks and rail link, approached court to terminate its business rescue proceedings and place it in liquidation.