JOHANNESBURG (miningweekly.com) – Botswana-based energy development company Shumba Energy has signed a binding memorandum of understanding (MoU) with HMS Bergbau Africa, a subsidiary of German trading house HMS Bergbau.
Under the terms of the agreement, the latter will be responsible for the exclusive marketing of all export product produced at Shumba’s mines from 2019.
Shumba MD Mashale Phumaphi noted that, despite political pressure to support nonfossil fuel sources, the company believed the global long-term outlook for thermal coal demand was promising, driven by the industrialisation of emerging economies and the need to secure reliable and cost-effective baseload power supply.
“The MoU, which introduces a credible and experienced partner, is a welcome step towards exploring the export market,” he added.
Shumba’s primary focus remains on developing power stations in Botswana to address the power challenges faced in Southern Africa.
Shumba has two advanced-stage coal-based independent power producer projects totalling 900 MW and two earlier-stage alternative energy assets spread across central Botswana.
These include the Mabesekwa project, located 60 km south-west of Francistown and the Sechaba coal project, located 47 km north-northwest of the town of Palapye.