Shumba Energy has concluded a JV partnership leading to it holding 80% of the equity in Coal Petroleum.

CoPet is a private Botswana company that has been focused on the development of a commercial scale liquid fuels production facility, called Project Tsosoloso and providing Botswana first and then Africa with energy fuels and specialty chemicals for value added product production.

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CoPet has partnered with Powerchina International Group and Wison Group, both leading Chinese EPC companies with a proven track record and recent experience in the coal-based power & CTL technologies for the execution of the BFS.

They are in the process of completing the technical aspects of the BFS to a detailed and accurate capital and operating cost estimation required to secure the project execution funding.

Shumba is continuing to engage with its partners Powerchina International and Wison on technical and project development issues, also on funding matters, including potential equity and project financing options.

Further Shumba has entered into a binding Coal Supply Agreement with CoPet to guarantee supply of all the feedstock that would be required for the life of the Project from the Mabesekwa coal resource and project situated approximately 60 km south-west of Francistown.

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CoPet is working with Shumba’s specialists for the integration of the Mabesekwa site geotechnical, regulatory permitting and environmental impact assessment activities.

CoPet now plans to build the proposed CTL facility at the Mabesekwa site and CoPet will now become a managed subsidiary of Shumba.