The announcement comes after contractor Protech Kuthele (PK), which oversees earthworks and rail link at the project, said it approached court to terminate its business rescue proceedings and place it in liquidation.

PK has terminated all activities and removed its entire staff from the mine site. Resgen now expects first coal production in the first half of 2016.

The company said in a statement, "Based on the previous competitive tender process, Resource Generation does not expect any difficulty in appointing an alternative earthworks contractor for a similar cost."

Resgen, however, continues funding negotiations with proposed debt financiers for the mobile equipment, the coal handling and preparation plant and the site infrastructure.