Mmamabula coalfield

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{{#badges: CoalSwarm}} Mmamabula coalfield is a proposed coal mine to the east of the main road and rail corridor in Botswana between Gaborone and Francistown and south of the Serorome River.

Location

The map below shows the location of the Mmamabula coal field in Mmaphashalala, Botswana.

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Background

The Mmamabula coalfield is considered to be a western extension of the Waterberg Coalfield in the Ellisras Basin in South Africa, which contains about 40% of South Africa's coal resources. The portions of the coalfield for which CIC Energy held licences are estimated to have 2.4 billion tonnes of thermal coal. Deposits were roughly 360 million tonnes in the Central block, 643 million tonnes in the Western block, and 1,392 million tonnes in the Eastern block. The South block, which lies on both sides of the road and rail corridor, is estimated to hold another 311 tonnes of coal.[1]

The Ministry of Minerals, Energy and Water Resources put up the Mmamabula South and Central blocks for tender in June 2012, once CIC's license was up for renewal. The blocks held about 670 million tonnes of coal. Bids would be evaluated in part on how quickly the bidder would be able to start exploiting the coal field.

However, in August 2012 the government decided to renew CIC's retention license for the central block, with about 361 million tonnes of coal. A week later the Competition Authority approved a proposed takeover of CIC Energy by Jindal Steel and Power of the Jindal Group, which wants large supplies of coal for its Indian steel plants.

In September 2012 it was announced that Jindal Steel and Power was completing a US$116 million purchase of CIC Energy, acquiring its rights in the Mmamabula coalfield. Jindal said it planned to develop a coal mine and a 300-MW power plant, the CIC Domestic Power Project, as well as coal-to-liquids through the CIC Coal to Hydrocarbons Project. It would also develop coal exports from the field, possibly via rail to Mozambique. The deal was conditional on approval by the Minister of Minerals, Energy and Water Resources.[2]

In June 2014 global mining company Anglo American bid for the prospecting licenses of Mmamabula South and Central blocks, which have an estimated 700 million tonnes of coal. The two blocks sit adjacent to the 2.4 billion tonne Mmamabula East coalfields, which was bought by the Jindal group from CIC Energy in 2014 in a P860 million deal.[3]

In April 2015 Jindal said it planned to offload 74 percent of the energy and coal mine project to South Africa’s Glendal Trading. The companies say there are potentially nine mines on the 2.7 million Mmamabula Energy Project (MEP) resources, with six of them earmarked to be underground and three open casts.[4][5]

In April 2017 it was reported that Jindal had shelved initial plans to offload 74% of its company to South Africa’s Glendal Trading.[6]

In April 2018, Maatla Energy of Bostwana submitted an Environmental Impact Assessment for the Mmamabula coal mine. The company’s aim is to commence production in 2018 and sales starting in 2019.[7]

Proposed power stations

The coalfield is the site of a number of proposed coal-fired power stations that would be fueled by the coal: CIC Coal to Hydrocarbons Project, CIC Domestic Power Project, and Mmamabula Energy Project.

Articles and resources

References

  1. CIC Energy, "Mmamabula Coalfield," Archived from the original on 2010-11-06. Retrieved 2012-02-19.
  2. "Takeover hopes brighten for Mmamabula, Mmamantswe," Mmegi Online, January 20, 2012.
  3. "Anglo wins Mmamabula coal licences tender," Mmegi Online, July 29, 2015
  4. See more at: http://www.mmegi.bw/index.php?aid=50408#sthash.RTTGmxcA.dpuf "Mmamabula project acquisition gets nod," Mmegi Online, Apr 9, 2015
  5. "Sese power plant to cost P15bn," Mmegi, June 12, 2015
  6. "Sese power project granted tax breaks," Mmegi, April 28, 2017
  7. "Mmamabula Coal Project," Maatla Energy, accessed May 2018

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External resources

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