Scharrig Bullish On Energy, Plans New Botswana Coal Mine

| Monday November 26, 2007 00:00

 

Part of the study would involve interrogating what the production would be used for, which could include power generation, coal-to-liquids production, or even coal exports, COO Robin Berry said in an interview after the official launch of the firm's new corporate identity. Scharrig had already been consulting with companies, including power parastatals Eskom and Nampower, he said.

Berry, who would take up the CEO's seat on December 1, said that the company had received 'a lot of interest' on partnering on its Botswana coal assets from parties including Asian, European, and North American entities.

He noted that fuel producer Sasol had also expressed a 'huge amount of interest' in coal resources in South Africa's Limpopo province, as well as Botswana, and that Scharrig would be talking to what is the world's biggest producer of petrol from coal.

'Sasol has a big appetite,' Berry stated.
Scharrig announced in September that it had teamed up with Sam Jonah's Jonah Capital to form a new coal company, Jonah Coal, to host all future coal interests in Africa, other than South Africa.

The newly formed firm, simultaneously, said that it had formed a JV with Aquila Resources, from Australia, to develop coal resources in Botswana, and build a power station.

The three areas that the JV owned, covering some 4 719 km2, were located in the North Eastern, Eastern and Southern parts of Botswana, a country which recently stated its intention to fast-track the development of its relatively underexploited coal potential.
All three were reported to contain more than one-billion tons of coal.

The Botswana government estimates its coal resources to be between 200-billion and 300-billion tons.

Sentula a Zulu word referring to a bull throwing up sand with its horns - was a fitting name, as Berry said that he was bullish on the energy market.

'The energy market has probably got a eight year life of growth,' he said of Southern Africa, which was currently suffering a power shortage.

'I'm not saying that we can solve it in that period of time, but we can certainly be a player in solving it in the longer term, because of the resources that we have.' Berry also highlighted that there was a global energy drive, which was pushing up coal prices.
Scharrig officially changes its name.
(Miningweekly)