11 May 2012 – African Energy Resources (AFR) is progressing the Sese coal and power project in Botswana. It has been bolstered by a recent announcement from the Botswana government that it is looking for a new 300 MW coal fired independent power producer (IPP). In addition, the company says that further IPP opportunities exist with credit worthy state-backed utilities.

AFR believes it is in a strong position to supply lowest cost coal in the region, and is currently negotiating an initial 300 MW IPP, with potential for a further 300 MW. The initial concept study for first 300 MW project has been completed, and power purchasers have been identified including the government of Botswana. A team of external consultants and advisors has been appointed.

The initial 300 MW coal fired power station will be based on same design as the country’s new four by 150 MW unit Morupule B facility. It will require 1.5 million tonnes a year of coal from the Sese coal deposit and the establishment of a 220 kV substation and 20 to 30 km of 220 kV transmission lines. The planning also includes 0.5 Gl/yr water supply infrastructure, coal handling equipment as well as ash handling equipment and facilities.

A recent milestone in progressing the Sese project included the completion of a 15,000 tonne bulk sample excavation and the successful trial rail shipment of coal to the east coast port of Maputo. Members of AER’s executive management team also embarked on a road show through India and China to promote the Sese coal and power project to potential strategic development partners.
 
AFR estimates that the Sese coal deposit contains 2.5 billion tonnes of coal, and the company is looking at mining five million tonnes a year.