AFR bids for SA power deals

Staff Writer | Thursday July 31, 2014 15:58

AFR holds approximately 8.7 billion tonnes of coal in eastern Botswana with advanced mining and election generation studies, as well as partnerships with established global power firms. The Australian company has also been shortlisted to build a 300-megawatt plant to supply the Botswana Power Corporation.

In a statement yesterday, directors explained that South Africa’s Department of Energy had issued a request for registration for the supply of 2,500MW by 2019, with bidders allowed to register up to three projects.

“In response, African Energy has been involved in the submission of four registrations,” directors said.

“A Letter of Support from the Ministry of Minerals Energy and Water Resources in Botswana accompanied each registration.”

The four projects registered include a joint registration by African Energy and ACWA Power International for a 300MW power project at its flagship Sese site.

“This project will be similar in scale and design to the project that has been submitted as an Expression of Interest for Botswana’s own 300MW Greenfield Independent Power Producer (IPP),” the junior miner said.

African Energy has also submitted three separate registrations for 600MW projects at Mmamantswe, with each registration as part of a different consortium.

“The procurement programme is structured to consist of separate Bid Submission Phases in which bid responses shall be submitted to the Department of Energy on specified Bid Submission Dates,” AFR directors explained.

“Projects submitted in the first Bid Submission Phase must be capable of commercial operation by the end of June 2019, and have a maximum contracted capacity of 600MW.

“Cross Border Projects in which the facility is situated outside South Africa are permissible.”

The latest developments in South Africa are a far cry from events in 2009 when authorities there deferred their purchase of coal-fired electricity from IPPs, leading to the collapse of the Mmamabula Energy Project and the eventual sale of the neighbouring Mmamantswe project.

AFR snapped up Mmamantswe last July for 3.5 million Australian Dollars in a deal that cemented the Australian company’s status as one of the top holders of coal ground in eastern Botswana.