Botswana holds the key in coal
Correspondent | Monday March 31, 2014 11:51
He told a conference themed ‘Unlocking the value and shaping the future of Botswana’s coal industry’ that the authoritative annual Fraser Institute Survey of Mining Companies 2012-2013 of the world’s most favoured destinations for mining investment has once again ranked Botswana as Africa’s premier mining place.
“This is the 7th year in a row that the country has enjoyed the honours. Demand for Botswana coal remains robust,” Phumaphi said.
The conference was organised by the International Quality and Productivity Centre (IQPC) on March 26 that for the past 12 months coal has been doing well.
He said the Flagship Sechaba Project has approximately one billion tonnes of thermal coal. The Sechaba Energy Project is a 300 MW power station and associated coal mine (initially 1.5 Mtpa) at Sechaba which is next to a 400KV substation which can transmit power to nine Southern African countries.
He said for the past 12 months Botswana has made developments in coal. Phumaphi said the Botswana government put out a tender for 11 new coal blocks.
The government approved P300m for power transmission infrastructure in this year’s budget, which will allow the Botswana Power Corporation (BPC) to connect Morupule to Maun, Zizabona and the new mines. The BPOPF launched an Alternative Investment Strategy whereby it has allocated significant funds for the development of Botswana infrastructure investment and private equity. These funds have the potential to contribute significantly to the development of Botswana’s coal industry.
“Another development is the recent signing of the bilateral agreement at Walvis Bay which contractually reaffirms commitment by the governments of Namibia and Botswana to the construction of the US$15 billion, 1,500km long railway and port between Botswana and Walvis Bay in Namibia. The agreement opens the way for private sector involvement in the Trans Kalahari Rail project (TKR),” Phumaphi said.
On the other recent development, Phumaphi said a bilateral memorandum of understanding was signed between Namibia and Botswana. The agreement is aimed at providing a framework for the participants towards promoting and enhancing cooperation in energy development and associated energy infrastructure.
Botswana coal was exported for the first time in April 2013. Botswana Railways (BR) and Transnet Freight Rail (TFR) began running three 35-wagon coal trains a week from Botswana to Durban, with coal destined for Turkey.
He said despite the challenging global environment for junior miners, they continue to make steady progress in Botswana.
The growing regional power deficit continues to present an opportunity for cheap power to be produced in Botswana for consumption throughout the SAPP.
Tony Zerbet, Business Head of Jindal Botswana, said that there is coal in Botswana but they are facing logistical problems.
He said Botswana is a landlocked country and that it does not have a port, it would need to develop a rail (evaluation route) to either west (Namibia) or east (Mozambique). He said the recent bilateral agreement between Namibia and Botswana is a stepping stone for them.
“We also want collaboration between the private sector and the public sector to create task committees to optimise the short time frame and impact change for the Botswana economy. Lack of skills is worrisome,” Zerbet said.