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African Energy, First Quantum advance Botswana coal/power project

African Energy, First Quantum advance Botswana coal/power project

Photo by Duane Daws

26th July 2016

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – ASX-listed African Energy Resources (AFR) is looking to update its mining study to meet the requirements of fuel delivery for a 450 MW integrated coal and power project, up from the 300 MW it had initially planned for its Botswana-based Sese project.

The update forms part of the work programmes AFR will embark on, following a A$3-million commitment from its joint venture (JV) partner, Canada’s First Quantum Minerals.

Other programmes that will start immediately include large-diameter drilling to collect one ton of coal for combustion testing and physical handling testwork.

This will lead to the development of the fuel specification for the proposed power station, and finalisation of the coal handling and processing flowsheet.

The company will also undertake preliminary geotechnical evaluations of the proposed power station site to assess sub‐surface conditions with respect to footings for the power station and ancillary infrastructure; update the environmental approvals to allow up to 450 MW of power generation and the associated coal mining and processing; and complete a preliminary design and layout of the power station.

Further, AFR will look to start negotiations for power offtake agreements with interested parties, execute a water supply agreement for the project, carry out hydrogeological studies at the mine site to characterise aquifers to allow mine design and aquifer management plans to be advanced and start early site works to include an upgraded access road and preliminary siting of camp facilities.

Lastly, the company would start diamond drilling to test the continuity and quality of the Seswe limestone deposit for use as a sorbent to reduce airborne sulphur emissions from the proposed power station.

Further, a 12‐month extension, to July 12, 2017, has been agreed for the investment of the remaining A$7-million required to complete First Quantum’s earn‐in for 75% interest in the Sese JV.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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