Shumba Energy
BSE-listed Shumba Energy, a Botswana-based coal mining and energy development company, has announced that its trading division has generated the first revenues.

To date Shumba Energy has sold over 1 000 tons of coal to customers in the regional market.

Shumba Energy established its coal trading division, Shumba Coal Trading (SCT), in 2015 as a result of the demand from future off-takers of the company’s export coal products.

SCT was founded to manage trade of coal from projects owned by Shumba Energy as well as other Botswana coal producers in order to develop and grow the market for low-cost, high-quality Botswana coal with regional customers.

To support its coal trading business, the company has brought on experienced coal industry professionals.

In addition, it is looking to further leverage its partnership with international coal logistics and marketing experts HMS Bergbau AG as announced earlier this year.

The regional market for coal is enormous, with industrial demand for thermal coal sitting at over 20 Mtpa and global seaborne coal prices returning to levels last seen before the 2007 recession.

“The management of Shumba Energy believe that the future of the trading business is immensely positive," comments MD, Mashale Phumaphi.

"As a next step we are looking at setting up our own wash plant as well as concluding the licensing for our own mines. In addition to receiving the first revenues for Shumba Energy we are also developing a market and client base for our own coal, as well as other Botswana miners.”

Shumba Energy was established in 2011 to provide the SADC region with low-cost coal and energy.

The company is reaching its development objectives and now controls a significant portion of advanced energy projects in Botswana, including over 4.5 billion tons of coal for thermal energy.

Feature image credit: Shumba Energy