Botswana’s Coal To Power Plant Gets Ahead - Africa’s premier report on the oil, gas and energy landscape.

Botswana’s Coal To Power Plant Gets Ahead

While other miners and hopefuls find themselves forced into delays and cutbacks because of funding woes and low commodity prices, Toronto-based CIC Energy is pressing ahead with plans to build a coal mine and power station at its Mmamabula project, in Botswana. The firm has now completed a mine plan for the 4.5Million tons a year coal mine and announced the selection of Chinese mechanical and electrical equipment manufacturer Shanghai Electric as the preferred engineering, procurement and construction (EPC) contractor for the initial power plant.

The company aimed to have submitted a mining licence application to the government of Botswana by end of 2008, and should begin the procurement process for the development of the mine and the associated infrastructure in 2009.

A turnkey EPC contract will be awarded for the manufacturing and erection of the wash plant and discussions are “well advanced” with the preferred contractor, the company reported. The coal crushing system and associated coal conveyor system will also be tendered for a turnkey EPC contract, and the procurement process for the equipment required for steady state mining will get under way in early 2009.

T h e M m a m a b u I a coalfield contains an estimated 2.93billion tons of coal in the measured and indicated categories, plus 34-million tons of inferred resources.

Despite a debilitating shortage of electricity supply in the Southern African region, the company had to abandon plans earlier in 2008 to award contracts for a 2,400-MW project, after its off takers, South Africa’s Eskom and the Botswana Power Corporation, were unable to agree on assuming risk for the project in order to meet lender requirements.

However, the firm now expects to sign 30-year off take agreements with both utilities by mid-2009, by which time it should also have a funding agreement in place.

The capital cost to build the mine and power station has been estimated at $3billion, and the company is in talks with development finance institutions, South African commercial banks and a Chinese export credit agency, which is being targeted for a “large segment” of the project funding.

CIC is not concerned by the impact of the financial crisis on the company’s ability to raise funds, because the lenders that it was targeting had not been affected as much as commercial banks.

In the meantime, the firm will fund early infrastructure work on the project from its $89-million treasury.

It has already begun a formal tender process for early work like site clearing, earthworks, roads, water-supply and waste water treatment facilities, and plans td use local contractors in Botswana as much as possible.

Share Article


Sponsored

1 comment

  1. December 28, 2010 at 6:21 pmDear Sir/ Madam,ECOLITE is a commercial iaiitntive (representing a diverse collaboration of exclusive and leading technologies) that shared the objective of delivering a commercially viable solar lighting solution to off-grid (without formal electricity) African end users. Lighting is an enabling and a life changing commodity (absent in Africa) with significant and positive social measure.ECOLITE manages seven technical disciplines: LED lightsource, enclosures, electrical cabling, electronic charger-controller, battery, solar panel and packaging through supply chain management. Our head office is in Bedfordview/ Johannesburg and we market to dedicated projects and retail sales establishment.We have successfully delivered our commercial objectives and are now gearing up to market (free establishment samples, training and supply chain franchise) into Sub-Saharan and the rest of Africa. This is parallel to a World Bank iaiitntive; please GOOGLE Lighting Africa. As a leader solar lighting solutions company, ECOLITE is focused on the African continent. We know that access to quality lighting enables economic empowerment and our delivered objectives complete the supply chain: concept + design + product + component + retail + after sales service.We will showcase and workshop our ECOKIT lighting solution to end user representatives at a select venue as of the end February 2011, enquires are welcome.Our Email to you request that you give consideration to whether your social research/ trade in Africa have identified areas and contacts that we may consider to market our vital and leading product. ”The eco-standard”WE WISH TO DONATE ECOKIT SOLAR LIGHTING SOLUTIONS WITH THE OBJECTIVE OF SALES ESTABLISHMENT.Regards, Christiaan. Projects Manager.

Leave a comment

Comment form

All fields marked (*) are required

© 2024 Festac News Press Ltd..