In light of the ever-increasing coal prices, CIC Energy Corp, responsible for the Mmamabula Energy complex in Botswana, was “rapidly taking forward an export coal initiative” from the complex, which would involve the construction of a new trans-border corridor from Botswana to the West coast of Africa.

CIC Energy Corp COO Tore Horvei explained that the construction of this trans-Kalahari railway might potentially unlock “quite a bit” of the interior coal, and other mineral resources of Botswana.

The Canada-listed company was looking at creating a trans-border corridor from Botswana to the West coast of the continent, and would be exporting through South Africa’s Richards Bay Coal Terminal, on the Eastern side of the continent, he said.

CIC Energy was targeting a minimum of ten-million tons a year of coal as the export volume, which would mean a higher production at the envisaged multi-product or grade mine, where the highest quality was exported and the rest used to fuel the power stations.

The first phase of the Mmamabula energy complex consisted of a 2 500-MW power station and a ten-million tons a year associated mine, which was expected to be commercially operational by 2012/13, and would be worth an estimated $10-billion - although this was subject to finalisation.

The second phase would consist of another 2 500 MW power station, and another ten-million tons a year mine, also valued at an estimated $10-billion.

In addition to the power station, and export coal opportunities, a new possibility for the energy complex was the inclusion of a coal-to-hydrocarbons (CTH) facility, and current feasibility studies were considering a capacity of 57 000 barrels a day, with the possibility to scale-up and double that production figure.

The estimated cost of the CTH facility was in the order of $5-billion, and commercial operation was envisaged for 2013.

The company would make an investment decision regarding the CTH facility towards the end of next year.

The CIC Energy Corporation was "at the very final discussions" stage of finalising power purchase agreements with South Africa's power utility Eskom and the Botswana Power Corporation with regard to its Mmamabula power project, and construction was expected to start in the fourth quarter this year.

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