Wednesday, October 21, 2020

Mmamantswe coal reserves beat expectations

Aviva Corporation, the Australian listed energy focused outfit said it has been stunned beyond belief by the huge potential of Mmamantswe project in Botswana, adding that its reserves gives it an upper edge since  the type of coal it has is the one which is globally sought after.

The┬á company which has been scouting coal in Mmamantswe ÔÇösome 100 kilometres┬áfrom GaboroneÔÇö just┬á off the Francistown- Gaborone Highway reported huge reserves to the tune of┬á895 million tonnes┬á earlier in the year.

“To achieve almost 70 percent┬áconversion from resources to reserves exceeded our expectations,” Aviva Corporation’s Chief Executive Officer, Lindsay┬áReed said.

“The strong reserve position, together with an 8Gl per annum water resource and outstanding infrastructure confirms Mmamantswe as a very attractive fuel source for an Independent Power Project.”

Information filed with the Australian Stock Exchange indicated that the recent Scoping Study completed by SRK showed the Coal Reserve could support 2000MW of power generation for 40 years at a low stripping ratio of 1.0:1 (bcm/t).

“The low stripping ratio and a low sulphur content of 0.38 percent are significant┬áadvantages for the Mmamantswe deposit,” the┬ácompany said.

The Perth-based energy producing company is tri-listed on the Australia, Botswana and London Stock Exchanges.

The company aims to be one of the trail blazing┬áindependent Power Producers in BotswanaÔÇö an operation that been reserved for government entities until recently.

The Mmamantswe deposit ÔÇô near MochudiÔÇö is a resource of┬á1 billion tonnes with an estimated reserve of 895 tonnes of coal.

The Mmamantswe concession areaÔÇö- which is some 110 kilometres north of Gaborone ÔÇö fell into the hands of┬á Mawana Minerals (Pty) LimitedÔÇöa company owned by the late Paul Ramaloto and his family in┬á 2006 after the discoveries made┬á by BP in the 1980s.

He later invited Aviva Corporation to a joint venture that would see the Australian company owning 90 percent subject to the fact that it covers full financial budget for prospecting up to a bankable feasibility study.

So far,┬áavailable record┬áfrom Department of┬á Geological Survey indicate that the┬á area has two different types of coal, ÔÇö similar to that at Matimba and Grootguluk mine┬á in South Africa at a depth of┬á 70 meters. Deeper┬áthan that, the company also has coal with similar rock characteristics to that of Morupule and Mmamabula.

Aviva comes at a time when the country is┬áestimated to be having coal resource of┬á200 billion ÔÇô enough to supply the power hungry┬ásouthern African region which is┬áat the initial stages of industrialisation.

“Aviva has now completed all the requisite technical studies to apply for registration of Mmamantswe Project as a sub-project of Botswana Power Corporation. Registration as a sub-project of a utility is a requirement for access to the Southern African Power Pool (SAPP) network,” the┬ácompany said.

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