Landlocked Botswana has an estimated 212 billion tonnes of coal, but none has so far been commercially exported outside the continent due to the absence of cost effective export routes to ports. Presenting at the Botswana Resource Sector Conference recently, African Energy Resources Limited managing director Frazer Tabeart said if Botswana is to become a major exporter of coal, it needs significant investment to improve rail infrastructure.
"There is a lot of opportunity for Botswana but this is affected by the long distance from the market without infrastructure. The distance to port requires highly efficient infrastructure corridors," he said. Botswana is competing with Indonesia and South African coal exports, both of which may be restricted as strategic assets by their respective governments. However, Australia poses the greatest threat with the yet to be developed Galilee Basin in Australia, also a potential supplier to India," he said. The Botswana Stock Exchange (BSE) listed African Energy is developing the 2.5 billion Sese coal resources in eastern Botswana and also recently bought the 1.3 billion Mmamantswe project.
