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Botswana could become a coal hub
Written by TENDANI PORTIA NKANI   
WEDNESDAY, 04 JULY 2012 00:00
As they gathered last week for the Botswana’s annual resource sector conference, mining companies have noted that the country has huge potential in coal production. Coal development is regularly featured at the annual conference as a potential substitute for Botswana’s diamond revenue.

Botswana has copper silver potential hence likely to become a major energy corridor within the Southern African power pool, said Australian Stock Exchange (ASX) listed MOD Resources Managing Director Derek Byrne.

“It’s quite clear that Botswana is an emerging copper/silver province of significant scale in a favourable geological setting. We have identified copper silver targets in some other parts of the country and will be the main focus in the next quarter. We are also looking into optimising the footprint,” said Byrne.

Kalahari Energy, which is pioneering energy growth in Botswana through coal-based methane exploitation, operates the small 90 MW Orapa power plant and is in the process of developing a new 180 MW power project in the country.

Addressing the conference, Kalahari Energy’s Chief Executive Officer, Steve Martin said the Botswana government has already shown itself to be a facilitator of independent power producers and now needed to take the next step of positioning the country as a major Southern African energy corridor.

Martin noted that the Botswana Power Corporation needs transition from being a generator and buyer of electricity to being a significant regional energy trader.

Danie Mouton of Exxaro advised all the coal-mining companies working in Botswana to collaborate to provide the efficient, bulk-based essential infrastructure that is currently preventing Botswana from realising its full coal potential.

Also forming part of the presenters at the conference, CIC Energy CEO Greg Kinross noted that the business climate is beginning to change positively for the Toronto Stock Exchange listed company, which has plans to generate power and export coal from Botswana.

As it awaits governments’ decision on infrastructure provision and power price agreements, Kinross said that the company is ready to proceed with its plans.

Meanwhile, the ASX and Botswana Stock Exchange listed Discovery Metals has emerged as the belt’s first copper-silver miner, whilst to date its market response has been a seven-fold uplift in its share price.

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