“Comparing the 2016 and 2017 estimates, the total coal resource for the project area increased from 347.1 Mt to 389.9 Mt, an improvement of 12%,” says Minergy CEO, Andre Bojé.
“Of this, the opencast area has increased from 71.2 Mt to 82.3 Mt, which translates into 25 years of opencast operations,” continues Bojé, adding that management is exceptionally pleased with the revised CPR and especially the improved yields.
This is good news for Minergy, which listed on the Botswana Stock Exchange in April 2017, and plans to build an opencast coal mine at Masama with the potential to produce 2,4 Mtpa.
The Masama coal project, located in the south-western corner of Botswana’s Mmamabula coalfield, is near to existing rail, road and water infrastructure, and has significant distance advantages over existing competing suppliers to regional customers, offering great potential for the southern African region and the export market.
The size of the resource also supports scalable production, presenting an opportunity to provide export coal to traders who supply India, China, and other areas of Asia, as well as Europe, should international coal price remain stable.
Bojé states that for the first time a measured resource was declared totalling 12.7 Mt and the overall indicated resource increased from 61.7 Mt to 73.2 Mt, a 19 % increase.
“The exploration programme vindicates our decision to focus on a reduced area of the overall prospecting area with a view to a long-term project supplying the regional market and ultimately the seaborne thermal coal market,” he explains.
While average raw coal qualities for the project remained similar, inherent moisture was notably lower and the A Seam in the underground areas showed considerably improved qualities.
Bojé says that theoretical yields of the primary product were considerably improved where the theoretical yield improved from 63 % to 66.4 %.
Minergy will be the second producer of coal in Botswana, and is committed to being on the forefront of developing a vibrant coal industry in the country.
“All our timelines for the project have now been met and we are confident of being in production in the third quarter of 2018,” concludes Bojé.
Feature image credit: Wikimedia