Botswana grants Sese mining lease
The Botswana government has awarded ASX-listed African Energy a mining licence for its Sese joint venture (JV).
The mining licence covers 51.47 km2 and contains 650-million tonnes of raw coal classified as measured and indicated resources, with African Energy saying on Tuesday that the granted mining lease contains more than enough coal for the currently contemplated 450 MW power project, as well as multiple expansions.
The mining licence will be valid for 25 years and could be extended for a further 25-year period on written application to the government.
African Energy told shareholders on Wednesday that the grant of the mining licence was an important step towards finalising the permits for the Sese integrated coal and power project, with the generation and export licence the only major outstanding permit required before the project can start.
In conjunction with the previously approved land rights and environmental approval, the mining licence gave African Energy the right to erect all buildings and infrastructure required to implement the project.
The Sese integrated power project comprises the initial development of a 300 MW power station and a 1.5-million-tonne-a-year captive coal mine, to be developed in conjunction with JV partner First Quantum Minerals.
BY: ESMARIE SWANEPOEL