Expanded P1.7 billion colliery due in 2011

MBONGENI MGUNI
Staff Writer | Friday April 9, 2010 00:00

The project, presently underway on the outskirts of Palapye, will result in the colliery ramping up production from current levels of below one million tonnes to more than three million tonnes. Of this production, the colliery plans to avail 2.8 million to the adjacent Morupule Power Station, which is also undergoing an expansion programme.

Debswana Group Manager (Public and Corporate Affairs), Esther Kanaimba-Senai, told Mmegi that the first coal from the expanded colliery was due to be delivered to the power station by June 1 next year. 'We are on track to deliver coal to the Botswana Power Corporation on 1 June 2011 as per the project schedule. The project team is currently distributing enquiries for various work packages into the marketplace. Construction is due to commence mid-2010. The project team is confident that they will achieve their milestones,' she said.

Stepping up production to June 1 will be timely for the expanded power station which expects its first output in January 2012.Kanaimba-Senai said early works related to the North-South Water Carrier and temporary power supply are already complete, paving way for the commencement of production. Part of the waterworks involved construction of a 750-metre concrete reservoir, a pump station, two 12, 000-cubic metre ponds and installation of 17-kilometre long pipelines, all connecting the expanded project to the North-South Water Carrier.

A drilling programme to confirm resources on the Morupule Main Seam has shown high quality resources of about 2.2 billion, which support the increased production at the colliery. Kanaimba-Senai said from the expanded colliery, 2.8 million tonnes would be sold to the BPC, while an additional 250, 000 would be sold to other clients. The colliery has also been able to secure an agreement on the price and quality of coal to be delivered to the power station.

'The negotiations are complete and are subject to final approval by BPC. The price and quality of delivered coal provides a fair and reasonable basis for the long-term sustainable operations of the colliery in support of the expanded power generation requirements of the BPC for the nation of Botswana until 2032,' she said.

The Debswana spokeswoman said funding for the colliery's expansion would be through a limited recourse financing package and equity input. Thus, the expansion of the colliery joins the Jwaneng Mine pit expansion project as another major capital project approved by the Debswana board for the current financial year.

The 83-billion tonne probable reserves stretching from Palapye to Serowe are under exploration, as Debswana already has ambitious plans for further development around as well as away from the existing Morupule Colliery. These plans include a second power station, an export coal project and further mining operations in the future. 'A drilling programme to further evaluate the coal resource is currently underway to add certainty to data already collected in previous years. Conceptual studies for additional underground and open cast mines have already been completed. The next step will be to obtain funding for pre-feasibility studies for the two projects,' said Kanaimba-Senai.

It is anticipated that the BPC and neighbouring countries will tap into supplies from further development of the Morupule coal reserves.