Haven't dropped in for ages to the STT, so busy with work and kids.
The coal is thermal.
A few bits of info:
The conceptual operation at Takatokwane Mine contemplates two open-cut strip mines employing drag line machinery each mining some 6 million tonnes per annum of coal. Some of this product will be upgraded through a modular two stage washing plant with three products delivered for despatch. These are an international seaborne coal product at a calorific value (CV) grade of 5,500 Kcal/kg, a mid-range product at around 4,800 Kcal/kg and a power station feed of 4,200 Kcal/kg.
The economic viability of the project requires the construction of a rail line currently under investigation by the Governments of Botswana and Namibia and recovery in international benchmark thermal coal prices. For this reason and until progress is made on these fronts, the Company is not prioritising the project schedule at this time.
Inferred Resource of 7,000,000,000 tonnes thermal grade coal
Indicated Resource 748,000,000 tonnes in shallow, wide seams
Pre-feasibility study now on FOUR by 6,000,000 tpa strip mines
Mega Mine operation will supply key export and regional markets
Path to Market via Trans Kalahari Rail Line across the property
Secondary path to market via South Africa and Eskom demand
Trans-Kalahari Rail (TKR) to Namibia
Botswana Government have appointed Aurecon (Aust) study manager leading to appointment of Developer and construction of project if proved viable.
Also appointed Synergies Economic Consulting (Aust) and Deloittes (Aust) for regulatory framework and economic, commercial and financing structure.
Stakeholder workshops ongoing – Botswana Coal Forum and Coal Development Unit are all active
TKR Timing
Project Approval 2015
Project Funding 2015-16
Construction 2016-2020
Operational Start Up 2020-22
Project Characteristics
Takatokwane is huge and this gives flexibility
The TKR railway will be passing very close to Takatokwane
There is strong government support for the rail-line
WKT can export coal in two directions when the rail-line is built
Market Dynamics
The Southern African coal market will be facing price tension by 2020
Indonesian coal exports have peaked
USA shale gas is now becoming more expensive than hard coal
