Name and Location
Mmamantswe coal project, Botswana.

Client
Aviva Corporation completed the sale of the Mmamantswe project to African Energy Resources in July 2013.

Project Description
The Mmamantswe project is located on the South African border, 70 km north of the capital, Gaborone.

The project has a large coal resource of 1.3-billion tonnes, including a probable run-of-mine (RoM) reserve of 895-million tonnes that contains about 200-million tons of export coal and 150-million tons of domestic coal.

A scoping study completed on the project in 2009 concluded that a ten-million-tonne-a year openpit mining operation could produce 2.4-million tonnes a year of washed export coal (22MJ/kg, <20% ash) and 2.1-million tonnes a year of middlings suitable for power station fuel (15.3MJ/kg, 38% ash) at a RoM cash cost of $9.10/t.

Value
The scoping study estimated a total capital cost of $350-million on an owner-operated basis.

Duration
The environmental-impact assessment for the Mmamantswe project will be completed in early 2012.

Latest Developments
African Energy has started coal and power marketing studies, and an associated economic appraisal of the project.

According to African Energy’s quarterly activities report for the period ended September 30, 2013, all project data is being assimilated into African Energy’s database and will be used to finalise the project plan for the next 12 months.

Key Contracts and Suppliers
SRK (scoping study).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
African Energy Resources, tel +61 8 6465 5500, fax +61 8 6465 5599 or email info@africanenergyresources.com.