“I am very pleased with the foundational nature of this MoU which is the first building block of what we hope will be a long-term relationship with the Basil Read Group,” states Shumba Energy chairman, Alan Clegg.
Basil Read Mining is part of the JSE-listed Basil Read Holdings, a leading construction and surface mining company in southern Africa.
[quote]Basil Read Holdings is an integrated service provider with a proven track-record and advanced expertise in construction, roads, developments and contract mining.
Basil Read Mining specialises in surface contract open pit and opencast mining, which includes drill, blast, load, haul and dump, material handling, in-pit water management, mobile plant maintenance and management services to the mining, quarrying and construction industries.
In addition, Basil Read Mining will assist Shumba Energy by providing inputs for mine design, scheduling and mine planning, infrastructure development, operations and project management, surveying and optimisation services across Sub-Saharan Africa.
“It has been our clear stated intent to select a few strategic operational partners to support our operational business model of using specialised outsourced services to execute our projects,” continues Clegg.
“This MoU is significant as it demonstrates the promised tactical execution of our plans presented to shareholders and entry by Shumba Energy into a new phase of preparation for execution and ultimately start-up of its formal mining operations for thermal coal production and market entry.
“This is designed to ensure earliest possible revenue streaming from our developed thermal coal assets in Botswana to cover the company’s baseline overhead operating costs without further significant capital raising just for this purpose and to move actively towards having the ability to fund required equity for further development of its projects,” he concludes.
Feature image credit: Shumba Energy