JOHANNESBURG (miningweekly.com) – Coal and energy company Minergy listed on the Botswana Stock Exchange (BSE) last week, following the raising of P72-million through a private placement.
The shares were listed to raise development funding for the company’s wholly-owned subsidiary, Minergy Coal, which owns the Masama coal resource in the south-western corner of Botswana’s Mmamabula coalfield.
Minergy plans to build an opencast coal mine with the potential to produce 2.4-million tonnes a year of high-quality coal for the regional market, including Botswana and South Africa, and possibly also the export market, within 16 to 18 months of the BSE listing.
Minergy CEO Andre Boje said the listing marked “a great day for Minergy, which marks the beginning of a resurgence in the Botswana coal industry . . . Minergy will be the second producer in the country.”
He added that, together with government and other industry players, Minergy would look to address the logistical challenges facing the coal industry in Botswana.
“We are pleased to be listing on the BSE; we are in good company, and as a responsible corporate citizen, we are committed to skills development and training and giving back to the communities in which we operate.”
The company has further plans to list on the JSE in the latter half of this year or early 2018.
Boje said an investment in the company offers shareholders an opportunity to invest in an anticipated cash generative coal mining operation, which presents a platform for further growth and creation of shareholder value.
“Assessments of the Masama project indicate that it will be capable of generating commercially attractive returns which would enable the company to pay attractive dividends.”
Boje added that coal would continue to play a major role in delivering energy access and security for a long time to come. “The International Energy Agency forecasts that coal will remain the largest single source of electricity generation until 2040. Coal still makes up 41% of global electricity generation and 29% of primary energy demand,” he said.