Shumba Coal, the novice on the Botswana Stock Exchange (BSE), sounded warning bells to the markets saying it is┬áplanning┬áa swathe of acquisitions of coal assets┬áin the country to beef up its 1 billion┬ácoal resource estimate as it pushes┬áto have its Environmental Impact Assessment in place within 18 months.
“We are planning acquisition and the development of┬áhighly prospective areas in Botswana. We are planning┬áassets acquisition during the economic downturn because it would be cheaper,” Managing Director of Shumba Coal, Mashale Phumaphi said.
Shumba Coal is┬ácurrently working on a pre-feasibility study on its┬á1 billion tonnes resource at┬áSechaba Thermal Project — some 30 kilometres north-east of the Morupule coal mine.
Shumba┬áCoal┬áis the first┬ácitizen-led coal development outfit and the first┬áresource company to have a primary listing on the BSE. It┬ásaid it is on track┬áfor production at its proposed┬ámine site┬áby 2015/16 as it┬áaims┬áfor a secondary listing on┬áStock Exchange of┬áMauritius (SEM).
It is understood that the company has met the basic requirements for the two exchangesÔÇöincluding Stock Exchange of Mauritius where it will seek a secondary listing in the next six months.
In its updates, the company pointed out that a scoping study has been completed over the Sechaba project, adding that the asset has “a potential to produce coal by┬á2015/2016 to supply a nearby power producer in addition to exporting coal”.
It further added that it aims to complete a full Environmental Impact Assessment study in the next 18 months for its 20-to-30 year life-span at Sechaba.
It said it is looking at the washed coal for export that will be used in power station and the discards that are for industrial aspects.
Shumba has partnered with one of the United Kingdom power developers to exploit┬ácoal resources in Botswana. The country is well endowed with unexploited coal resource┬áestimated at 212 billion tonnes.
The company closed the week Friday flat at 105 thebe per share.