Botswana Stock Exchange (BSE) listed Shumba Coal’s flagship and primary focus Sechaba Energy Complex (SEC) is in discussions with nine Southern African countries who have expressed an interest in direct electricity supply, says the Managing Director Mashale Phumaphi.
Giving a brief account of Shumba Coal’s recent developments for the past 12 months in Gaborone last week, Phumaphi said the discussions with SEC’s could not have come at a more opportune time given its multiple power generation potential capacity of 300MW for domestic and export power consumption, as major power shortage exists in the Southern African region particularly in Namibia, Zimbabwe, and South Africa; with South Africa being the largest market.
Phumaphi said: “In developing the Sechaba Energy Project, Shumba Coal will complete water supply, transmission and power station selection and design studies and environmental impact assessment (EIA). We are considering potential strategic partners for the development of the power station and have selected the best location for road, railway line and high voltage power distribution in Botswana.”
The SEC Project and associated coal mine, initially producing 1.5 million tons annually (Mtpa) is next to a 400KV substation which can transmit power and also produce coal for domestic power stations and export large tonnages via existing rail networks. For instance, Eskom needs 60 million tons a year of new coal to come on stream in the next few years and 120 million tons before 2020.
Demand for Botswana coal remains robust and world class coal asset Sechaba has the best infrastructure in Botswana for upcoming coal mines.
The recent signing of the Bi-Lateral Agreement at Walvis Bay which contractually reaffirms commitment by the Governments of Namibia and Botswana to the construction of the US$15 billion, 1,500km long railway and port between Botswana and Walvis Bay in Namibia. The Agreement opens the way for private sector involvement in the TKR for companies such as Shumba Coal remains committed to bbuilding sustainable coal production in Botswana.
Current rail allows export via ports in South Africa and Mozambique. Transnet Freight and Rail are building rail link between Botswana and South Africa as part of the current heavy haul expansion in Limpopo’s Waterberg to bring coal from Botswana.
Two consortia intend to construct two separate rail way lines: the Trans-Kalahari and Ponto Techobanine routes terminating at ports in Namibia and Mozambique, respectively.
The Sechaba Export Coal Project can export large tonnages of coal via existing rail and port networks to Asian and European markets.
According to research, world coal consumption will surpass oil by 2020 due to rising demand in China and India.
Blending Sechaba’s Taukome Bright Seam with Morupule Main Seam or with coal from Morupule Colliery provides a high quality export coal good project economics.
Shumba is acquiring four more licenses in the area to become the leading regional producer of sustainable coal based energy by building a portfolio of coal assets with a low cost to mine, well positioned in terms on power, road and rail infrastructure.