27 Apr 2018
Maatla Resources has also submitter the mining license application for approval.
The Mmamabula coal mine is located in one of the main coal fields in Botswana and contains over 90 Mt of high grade thermal coal.
The project has a mine life in excess of 25 years and is targeting production of 50 000 tpm, ramping up to 100 000 tpm within the first year of production.
The company is on track to commence site establishment and construction activities in 2018 and first coal sales in 2019, dependant on financial close and timeous award of mining license.
There is an upward movement in the international coal price and an increasing demand for high grade sized coal in the Southern African inland market. The price of high grade sized coal has remained stable in comparison to the API4 Index and is currently selling at a premium.
Maatla Energy’s Mmamabula coal mine will produce high-grade coal for the regional sized coal market as well as for cement and lime producers, paper mills, chemical industries, brickworks, breweries, sugar estates, hospitals and general boiler applications in Southern Africa.
Botswana is a stable jurisdiction with the highest investment rating in Africa, and a vision to expand the coal sector, along with investing in export rail infrastructure.
The company is strategically well positioned to supply coal to the region, especially with the Mmamabula coal mine’s access to the planned Waterberg rail link for future off-shore exports.
“We are very excited about Maatla Energy’s EIA approval and the recent submission of the mining license application.
“The company is making great progress to reach production by mid-2019 and we are eager to reach this momentous milestone. There is currently a large deficit for high grade sized coal in the region, and we, as a company, are hoping to capitalise on this opportunity in the very near future”, says Maatla Energy CEO Jacques Badenhorst.