Bigger, better Mmamabula set for rebirth

MBONGENI MGUNI
Staff Writer | Friday April 19, 2013 00:00

 

At its height around 2007, the Mmamabula project promised 2,400MW of power driven by a coal mine on a resource measuring 2.7 billion of various coal qualities.

Due mainly to market issues, the then project developers reduced the planned power station to 1,200 MW in 2008, before focusing on a 300MW project whose power would be sold to government.The downsizing of the power station component of the Mmamabula project coincided with a heightened focus on coal exports of up to 10 million tonnes per year.

This week, Jindal Steel and Power, unveiled ambitious plans for the Mmamabula energy project, which it took over last September from Canadian firm, CIC Energy. According to its plans, Jindal plans to unlock value from the 2.7 billion tonne Mmamabula resource by power generation, coal exports and the revival of the Coal to Liquids project. CIC Energy froze expenditure on its Coal to Hydrocarbons project in 2011 in order to focus capital on the coal export priority.

 After acquiring Mmamabula last September, the Indian firm had said it would spend P5.5 billion in developing both the coal export and power generation aspects of the project.'The technical and financial studies are finished for eight mining complexes and there are multiple studies ongoing for power generation,' Jindal Africa head, Tony Zebert said at a conference on Tuesday. 'We are looking at coal exports through Walvis Bay in Namibia and development of power station within 36 to 42 months, depending on discussions we are having here and within the region as well as the regional power situation.'

Jindal plans a phased approach to its power development at Mmamabula, with initial output of 2 x 300MW, followed by another 2 x 300MW before the final 3 x 800MW.Zebert said the Indian giant's global expertise would assist in progressing the Coal to Liquids (CTL) component of the Mmamabula plans.

'The CTL possibility is aligned to the core competencies we have as a group,' he said.'We will be bringing that technology and expertise from India to Africa.' Jindal has a presence in seven African countries, including Botswana, South Africa, Zambia, Namibia and Mozambique. In Botswana, the group is leveraging on the detailed and advanced technical studies done by CIC Energy, in its efforts to monetise Mmamabula.