The Sese Joint Venture comprises of TSX-listed First Quantum Minerals and ASX-listed African Energy Resources.
The mining license covers an area of 51.47 km2 and contains 650 Mt of raw coal in measured and indicated resources. This is entirely within the global resource of 2.5 Bt of coal at Sese.
The approved mining license contains more than enough coal in the higher quality SS seam for the currently contemplated 450 MW power project at Sese, plus multiple expansions.
The mining license is valid for 25 years. This can be extended by a further period of up to 25 years on written application to the minister of mineral resources, green technology and energy security not less than 12 months before expiry of the license.
In conjunction with the previously approved land rights and environmental approval, the mining license gives the owner the right to erect all buildings and infrastructure required to implement the project.
The granting of the mining license is an important step towards finalising the permits for the Sese integrated coal and power project, with the generation and export license being the only major outstanding permit required before the project can commence.
The Sese integrated power project comprises a power station complex with its own captive coal mine.
The initial development concept is centred on an initial 300 MW power station (2 x 150 MW CFB boilers) with a captive 1.5 Mtpa coal mine.
Additional 300 MW developments are proposed as capacity is contracted.
The First Quantum Minerals joint venture agreement provides African Energy Resources with a development partner for Sese with a strong track record in developing large-scale capital projects and it also provides a sound financial partner who is responsible for providing the necessary funding for the project development.
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