Good networks necessary for coal market

Botswana needs internationally competitive logistics such as rail and ports to be on the lower part of the cost curve if they are to fend off stiff competition to supply the Asian coal market from dominant mining countries such as Australian and Indonesia mines, a coal expert has said.

With huge coal appetite coming from mainly booming economies such as china and India, Botswana plans to fully exploit its 210 billion of resources to become a top coal exporter in the next six years with the construction of a new railway line and a new port in either Namibia and Mozambique.  Speaking to Mmegi in an interview this week, Africa Energy Resources(AER) director David Scott said that for Botswana to enjoy maximum benefits from the lucrative Asian coal market, containing production and transportation costs would be key.