Govt, World Bank strategise for massive coal assets

MBONGENI MGUNI
Staff Writer | Thursday October 21, 2010 00:00

 

Experts believe further studies using more superior technology will soon advance estimated coal resources towards 300 billion tonnes.

Yesterday, the Director of Mines, Kgomotso Abi, said the government and the World Bank were currently preparing terms of reference to be used to retain a consultancy for the development of the roadmap.

'We are finalising the terms of reference, following which we will engage a consultancy for the roadmap,' Abi said. 'We signed an agreement with the World Bank in July and hopefully the consultancy will have started its work by early next year.'

He said the development of the roadmap stems from the P920 million loan advanced by the World Bank to the Botswana Power Corporation (BPC) for the 600-megawatt Morupule B project.

He revealed that the loan included funding for technical assistance, which encompasses the coal roadmap, carbon capture issues and a feasibility study for a solar power plant. The Director of Mines explained the importance of the roadmap to the successful exploitation of Botswana's massive coal resources.

'We have massive resources,' he said, 'but how do we turn this into profits for the country? There are market issues because as a country, we cannot consume a lot and to go large scale, a market will be needed.'

There are issues of coal exports and exports of the coal as power, as well as technical issues.

'The strategy must bring all these issues together. It must also bring together the various partners from the Ministry of Minerals, Energy and Water Resources to the Ministry of Transport and others in one forum.'

According to Abi, the roadmap comes at a time when interest in local energy minerals, particularly coal, is peaking, with nearly every other application for a prospecting licence being for such minerals.

Last year, the Department of Geological Survey (DGS) recorded a 50-percent rise in the number of applications for the exploration of energy minerals.

Abi said most demand for energy minerals is driven by the explorer's desire to plug the lucrative electricity deficit affecting southern Africa.

'We had the first coal conference in 2007 and there was a lot of excitement around the mineral,' he said.

'There was no ground available for new coal prospecting licences and explorers had to enter into ventures with those who already held licences.'

At present, there is ground for new licences as some were withdrawn from certain explorers due to underperformance.

'In addition, half the ground is taken away from an explorer when the prospecting licence is renewed, and this has created room for more players.'