Mmamantswe Coal Project
The Mmamantswe Coal Project is a proposed 600-megawatt (MW) coal-fired power station and mine in Botswana.
The map below shows the approximate location where the plant would be built, 70 km north of Gabarone.
The Mmamantswe Coal Project is in south-eastern Botswana, an area that has been estimated to contain 895 million tonnes of probable reserves. The mine and plant were initially proposed by the Perth, Australia headquartered energy company, the Aviva Corporation. An EIA was approved for the project by the Government of Botswana in October 2012. The EIA was for a coal mining operation of up to 10 million tonnes a year and a 2,000MW power station.
In July 2015 African Energy announced it had signed a term sheet with an unnamed South African project developer to divest of Mmamantswe. Under the proposed deal, African Energy would sell the Mmamantswe project for an initial sum of US$10 million to the developer, with the option of another US$10 million if the deal is concluded.
In December 2015 African Energy said it had entered an agreement where TM Consulting (TMC) will acquire the Mmamantswe project for US$20 million, subject to certain conditions being met. The most important condition is that the bid consortium wins a tender to build a 600 MW coal-fired power station for South Africa and takes this to financial close.
In February 2016 Africa Energy said it registered a 600 MW coal plant with South Africa's coal base-load independent power project procurement (IPP) program.
In October 2016 South Africa's Department of Energy announced that the successful bidders for the 1st coal-based IPP Programme were the Thabametsi power station and the Khanyisa power station. Based on the announcement, it appears that the Mmamantswe Coal Project has no immediate future prospects and should be considered to be shelved.
Initial project plans by Aviva
In June 2007 Aviva Corporation entered into a heads of agreement with Mawana Minerals (Pty) Ltd of Botswana to form a joint venture over the Mmamantswe Coal Project. On its website the company states that it will "spend $US0.5M over 18 months upon which Mawana will grant it an exclusive right to earn a 90% Joint Venture interest in the project by undertaking a Bankable Feasibility Study." The coal deposit has not been explored since 1983 but the company states that the earlier exploration indicated three coal seams between 30 and 110 metres deep.
Despite limited information on the actual coal deposit, in June 2008 Aviva optimistically submitted an expression of interest to provide "1,000MW of baseload power production" to Eskom, the South African government-owned electricity utility, between 2012 and 2017.
The company has stated that its "team of energy experts" charged with developing the Coolimba Power Station project would also help "advance the Mmamantswe Project".
- Sponsor: African Energy Resources (may sell project to TM Consulting, if TM can achieve financial close on the project)
- Parent company:
- Location: Gabarone, Bosnia
- Coordinates: -24.4020965, 26.5731812 (approximate)
- Status: Shelved (in 2012 - new project may require new EIA process)
- Gross Capacity: 600 MW
- Projected in service:
- Coal Type:
- Coal Source: Mmamantswe coal mine (proposed)
- Source of financing:
Articles and resources
- "African Energy completes the acquisition of 1.3Bt Mmamantswe Coal project in Botswana," Proactive Investors, July 10, 2013.
- "SA investors bag another local power project," Mmegi, July 7, 2015
- "Mmamantswe Coal Project," African Energy Resources, accessed February 2014
- "CAPITAL RAISING AND1.3 BT COAL PROJECT ACQUISITION," Africa Energy Resources, 29 April 2013
- "African Energy Resources’ Botswana projects aimed at SA’s IPP coal programme," Mining Review, May 2, 2016
- "African Energy finalises Mmamantswe partnership," Botswana Guardian, Feb 11, 2016
- [file:///Users/jenniferbeach/Downloads/PressRelease-Coal-based-Independent-Power-Producer-programme-announcement-10Oct2016.pdf "Coal-based Independent Power Producer programme announcement,"] Department of Energy, 10 October 2016 (pdf)
- Aviva Corporation, "Mmamantswe Coal Project", Aviva Corporation website, accessed August 2008.
- Aviva Corporation, "Power EOI Submitted to Eskom", Media Release, June 19, 2008.