African Energy Resources, the Australian listed exploration outfit, sent strong warning to the market Monday about its intention to seek secondary listing on the Botswana Stock Exchange (BSE) that was bolstered by the success of Firestone Diamonds.
The coming in of African Energy Resource as a potential client of BSE bolsters corporate activities in the country post the worst┬á industrial action in the country’s living memory.
Firestone Diamonds listed on the BSE on Monday and Botswana Diamonds submitted its application on the same day while┬á Letole La Rona┬á floats today.
Other corporate activities include┬á Lucara Diamonds, which is understood to be ramping up its application. And Botswana Building Society and Botswana Development Corporation are putting┬áfinishing touches to their bond issuance plans.
“African Energy is working on plans to list on the BSE. They are planning to submit┬á their documents before the end of this week,” a source said Monday night.
┬áAfrican┬á Energy┬á owns┬á Sese project┬á some┬á 50 kilometers south-west┬á of┬á Francistown and last year the company announced the┬á discovery of┬á “potentially very large deposit of thermal coal” in the northwest of┬á┬á Sese project.┬á
The area is┬ásaid to be having some impressive seam with an average┬á thickness of up to 30 meters, which is also closer to the┬á surface, according to the latest report released last week.
It further indicated that it has asked for an amendment to its┬á prospective license, which is currently subject to the recently announced moratorium on coal and coal bed methane licence applications, which is due to end in September 2011.
┬áThe project is situated┬á close to the rail-line that┬á┬á links the┬ásouthern and northern parts of the┬á country in the eastern corridor ÔÇô that provides access to both┬á South African ports and the proposed Trans Kalahari rail┬á that┬á would link Botswana with Namibian ports.
African Energy┬áfurther indicated the┬á closeness of the┬á project to the rail line is┬áa huge advantage since┬á large volumes of coal will need┬á to be transported by┬á rail┬á into the seaborne export market.
The move by┬á African Energy comes at a time when the world is┬á predicted to┬á see an acceleration of coal demand┬á bolstered by the┬á appetite from China, India and Japan.
This year alone, thermal coal is expected to outpace gas and demand┬á by as much as 30 percent.
“On the basis of the drilling results completed to date, the exploration target previously published by the company has been increased to 1.5 to 2 billion tones of such coal,” the company┬á added.
The┬á company further stated that it┬á has started a bulk sampling exercise to determine the┬á coal washing characteristics┬á that will also inform it┬á about the┬á suitable power station for power generation.