Govt Engages Investors to Revive Coal Project

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Govt Engages Investors to Revive Coal Project
Govt Engages Investors to Revive Coal Project

Africa-Press – Botswana. Government continues to explore opportunities to engage different investors in the mining and energy sectors, expressing hope that potential backers will come forward to develop key projects.

Answering a question in a Parliament on Friday on behalf of the Minister of Minerals and Energy, Minister of Environment and Tourism, Mr Wynter Mmolotsi, said that while there were no specific timelines, government was optimistic about attracting investors for the Mmamantswe Coal Project.

Mr Mmolotsi provided background on the project, noting that Aviva Corporation once owned the Mmamantswe Coal Exploration Project, which boasts an estimated 1.3 billion tonnes of coal resources.

The initial plan involved establishing a coal mine capable of producing 10 million tonnes per annum, which would support a 1 000 megawatt (2x500mw) export power station for Eskom.

However, challenges emerged in 2012, leading to the project’s failure, after which the mineral concession was acquired by African Energy.

The new owners also aimed to attract investment for its development. Unfortunately, the prospecting license under African Energy expired in 2021 and was not renewed due to the company’s inability to secure an investor. As it stands, no mineral concession currently exists for the area.

Kgatleng Central MP, Mr Mpho Morolong, had sought clarification from the minister regarding the current status of the Mmamantswe Coal Mine, questioning whether the project had been officially shelved and the reasons behind such a decision. He also inquired about any government actions being considered to revive or repurpose the project, given its potential economic benefits for the region, including local employment and infrastructure development opportunities in Kgatleng Central.

Mr Morolong highlighted that the project was expected to boost the economies of surrounding villages such as Ramotlabaki and Olifantsdrift, particularly in relation to the anticipated expansion of the border post for coal supply to South Africa. He expressed concerns regarding the political will of the new government to reinvigorate the project, which he believes could significantly diversify and grow the local economy.

In a related matter, Selebi Phikwe East MP, Mr Kgoberego Nkawana, asked the minister to clarify whether the non-renewal of African Energy’s contract was indeed due to the company’s failure to attract investors.

He posited that licensing was crucial for attracting investment, suggesting that the government may have hindered potential investment opportunities by not renewing the prospecting license.

In response, Mr Mmolotsi clarified that African Energy had been granted a prospecting license but failed to secure an investor within the allotted time. After the expiration of the license, the company requested a renewal, which was ultimately denied to allow other potential companies the chance to explore the project.

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