Morupule secures SA deals for new P1.7bn expansion
Mbongeni Mguni | Monday December 6, 2021 06:00
Last week, President Mokgweetsi Masisi officially broke ground on the new mine, which will produce 1.4 million tonnes of coal per annum, adding to MCM’s current output of 2.8 million tonnes per annum. MCM, located on the outskirts of Palapye, has been an underground operation since its establishment in 1973 and the new open cast mine further taps into the huge coal resources within its lease.
MCM project manager, Lefika Moagi told BusinessWeek that the new mine, known as Motheo, would also target supply beyond the continent.
“The washed coal products from the Motheo Project are fully committed and majority of the key off takers are in the South African industrial market,” he said. “As part of increasing MCM’s footprint in South African and regional market, we are also in the process of establishing a South African marketing office and we are exploring to trade our coal in the seaborne market, in particular Asia.”
Botswana Railways recently said the planned Mmamabula-Lephalale railway should be up and running in the next three years. The link, which will run for about 130 kilometres across the border to Lephalale in Limpopo, will provide a more direct, high-capacity route for coal and other bulk commodities to the sea, through both Richard's Bay and Mozambique.
Moagi said Motheo is expected to be operational by April 2022.
“The early works development of the project started in the later part of 2019. “The early works, which included development of the engineered earthworks, roads, sewage, storm water, water, communication/fibre and electrical infrastructure are completed and the contract is currently on the 12 months defect liability period. “The development of coal handling and processing plant by Jodhee Minerals Botswana commenced in the early part of 2020 and the plant is planned to be commissioned in late March to April 2022 for coal mining production,” he said.
The new mine comes at a time when Botswana and other coal-dependent countries are under pressure to exit the mineral due to its high contribution to carbon emissions. At the recent United Nations climate conference in Glasgow, Scotland, Botswana agreed to taper its use of coal, but declined to sign a clause committing to issuing no new coal licences.
The country already has climate commitments under previous global deals and last week, Masisi said while Botswana was aware of the sensitivities around new coal projects, maintaining a sustainable environment did not mean that the country’s natural resources should not be used.
“We are committed to our international obligations, to contribute to the reduction of carbon emissions, some of which result from the conventional generation of electricity using coal,” he said. “We have developed an Integrated Resource Plan and a Coal Road Map to guide efforts for the sustainable exploitation of the vast coal resources, through the use of clean technologies, while at the same time deriving maximum benefits for sustainable economic diversification and job creation.”
Minerals minister, Lefoko Moagi said coal and Coal Bed Methane could provide interim solutions for energy security during Botswana’s transition to cleaner electricity.
“Coal and Coal Bed Methane can also create the investment funds necessary to fund the transition to renewables. “Moving towards reduced carbon emissions will require significant funding and government also has a duty to provide energy security during the transition,” he said.
At present, Botswana is almost entirely dependent on coal for its electricity, although the new Integrated Resource Plan will see renewables accounting for 81% of new generation over the next 20 years.