Name and Location
Takatokwane coal project, Botswana.

Client
Walkabout Resources controls 67% of the Takatokwane coal project through two joint ventures with Botswana-based companies.

Project Description
A high-end scoping study, which is part of an ongoing prefeasibility study on the seven-billion-tonne 2004 Joint Ore Reserves Committee (Jorc-) -compliant Takatokwane inferred resource, has confirmed the robust development model of the project.

The mine design has focused on the target mining area where 748-million tonnes have been classified under the Jorc indicated resource.

The study considers only the mining of the wide Seam 2 Upper and Lower and the overall stripping ratio is deemed to be 4.09 over the 20-year life-of-mine.

The conceptual operation at the Takatokwane project envisages two opencut strip mines employing dragline machinery; each mining an estimated six-million tonnes a year of coal. Some of this product will be upgraded through a modular two-stage washing plant, with three products delivered for despatch. These are an international seaborne coal product at a calorific value grade of 5 500 Kcal/kg, a midrange product at about 4 800 Kcal/kg and a power station feed of 4 200 Kcal/kg.

The midrange and power station feed products are well suited to international and Southern Africa coal power producing infrastructure, while the higher-grade product represents an international seaborne thermal coal market that is rapidly adapting to a volatile supply dynamic.

The study has opted for a 12-million-tonne-a-year production rate, but this can be significantly upscaled in modular extensions.

The study also considers the ability of the project – by virtue of its location being adjacent to the TKR rail line – to transport coal product to the west to Walvis Bay, and also southwards to South Africa.

Net Present Value/Internal Rate of Return
The project has a net present value at a discounted rate of 5% of $852.17-million and an internal rate of return of 13.8%.

Value
The project will cost an estimated $767-million.

Duration
Not stated.

Latest Developments
The development of the Takatokwane thermal coal project remains dependent on the construction of suitable rail infrastructure to transport the coal product.

Currently, the coal development unit of Botswana is managing the feasibility study of the Trans-Kalahari Rail (TKR) project, which is expected to be completed by 2019/20.

The Takatokwane coal project is a key input to the viability of the TKR project.

Key Contracts and Suppliers
Optiro and Analytica (resource modelling), Wellfield Consulting Services (water management study, Ecosurv Environmental Consultants (environmental management), Bergstan (logistics and transport), and B&K Project Specialists (coal washing, mining and engineering).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Walkabout Resources, tel +61 8 6298 7500, fax +61 8 6298 7501 or email admin@wkt.com.au.
Optiro, tel +61 8 9215 0000, fax +61 8 9215 0011 or email contact@optiro.com.
Ecosurv Environmental Consultants, tel +267 316 1533, fax +267 316 1878 or email admin@ecosurv.com.
Bergstan, Samore Herbstein, tel +27 011 442 9914, fax +27 011 442 1003 or email samore@bergstan.co.za.