developing a coal and energy company in botswana
TRANSCRIPT
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DEVELOPINGA
COALANDENERGY
COMPANYINBOTSWANA
• CoalandEnergydevelopmentcompanyinBotswana
• Strongexperienceddevelopmentteam
• Phase1:MmamabulaCoalMine– AwaitMiningLicense
Ø Investmentof±USD41million
Ø ±420PermanentemployeesinOperationalphase
Ø Targetcommencementofconstruction- Q12019
Ø Plannedcoalsales - Q42019
Ø SizedcoalproductforSAinlandmarket- 100,000tpm
Ø CapitalizingondistressedSouthAfricancoalmarket
• Botswana- Stabletopinvestmentgradejurisdiction
• Phase2:MmamabulaCoaltoLiquidsproject– FeasibilitycommenceinQ1
2019
Ø Estimatedinvestmentof± USD300millionandcreatingapproximately1500jobs
Highlights
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Phase two:
Mmamabula
gas to liquids
Phase one:
• Construction Q1 2019
§ Production Q4 2019
Develop Coal to
Liquid (CTL)
Business
• 50,000 tpm ramping up to
100,000tpm sized coal export
operation for SA Inland Market
• Secondary Mine producing 300 000
tpm of thermal coal for export –
subject to Waterberg Rail Link
USD 10 million Funding
secured for Feasibility Study –
Commencement Q1 2019
Phase one:
Mmamabula Coal Mine
Development
Strategy
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§ Botswana,CentralDistrictandwithinthe
Mmamabulacoalfield
§ 145kmnorthofGaborone&125kmsouthof
Palapye
§ Nearestvillage:Mookane
§ SiteaccessibleviaA1tarroadandlink
currentlyunderconstructionbetweenDibete
andMartinsdrift
§ Ideallylocatedregardingaccesstofuture
MmamabulatoLephalaleraillinkforexports
ProjectLocation
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§ ProjectlocatedintheMmamabulaCoalfieldthathostsinexcess
of2billiontonsofhighgradecoal
§ Coalseams:D1,M2,seamthicknessof3-4m
§ Highgradethermalcoal:CV22-24MJ/kg(raw)
§ Extensiveexplorationconducted
§ Totalholesdrilled:218
§ CompetentPerson’sReportcompiledbyNicoDenner,GEMECS
§ Projecthasinexcessof90MTofMineableInSituTons(MITS)
§ ConventionalOpencastMiningwithTruckandShovel
Operations.UndergroundMining– BoardandPillar
§ Phase1- Onaverage140000tpmofROM
§ 100000tpmofprocessedandsizedproductforregionalmarket
§ MiningLicenseapplicationsubmittedinApril2018– Award
expectedin2018/early2019
Geology, Exploration,MiningandProcessing
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Infrastructuretobedeveloped:Mineaccessroad,minewater&powersupply,minebuildings&securitycontrol,
pollutioncontroldams,discarddam,railwaysiding:1.5km
MineInfrastructure
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MmamabulaCoalMineTimeline
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PhaseTwo
CoaltoLiquids
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§ Distributed/Modulardesignutilisingprovenand
scalabletechnology
§ SmallScaleProduction
§ 3000bbl/d(160- 180millionlitresperannum)
§ Phase2CTLFeasibilitytocommenceinQ12019–
EstimatedcostofUSD10million
§ ExpressionofInterestforoff-takereceivedfrom
BotswanaOil
§ Implementationcapexestimatedat± USD290million
§ Timeline
• FeasibilityStudy&EIA 14-16months
• Implementation 18– 24months
MmamabulaCoaltoLiquids–
UnlockingtheValueChain
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• GlobalDemandincreasingfrom±900MTperannum
toovera1000MTperannumin2025andeven
furtherto1240MTperannumby2030.
• DemandismainlyduetoSouthEastAsiaandother
developingcountriesrelyingoncoalasasourceof
powergeneration.
• InternationalEnergyAgency(IEA)forecaststhatcoal
willremainthelargestsinglesourceofelectricity
generationthroughto2040.
• Coalmakesuparound40%ofglobalelectricity
generationandastonishingamountsofcoalfired
powerstationsarebeingplannedorconstructed
worldwide.
• CurrentincreaseddemandfromIndiais±60MTper
annumandPakistan±20MTperannum.
• NobleEnergyResearchpredictsa”shortfall”of±380
MTperannum.
CoalIndustryandMarket
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Thereisanincreasingdemandgloballyforcoalwithadeclineinproduction
• ContributingfactorsforRegionalMarketshortages
andincreasedpricingofsizedcoalmarket,seaborne
exportmarketandEskomsupply
Ø Asaresultofglobaldemandincreasingwithnotenough
newminesopeningup,thermalcoalpriceshavemoved
upwardssignificantly.
Ø API4increasedfromaroundUSD50pertonin2016to
aroundUSD100pertonin2018.
Ø Newlargecoalminingprojectsarenotbeingdevelopedin
SouthAfricaduetoinvestmentsentimentinSouthAfrica
andCoalMining(DirtyEnergy).
Ø Securingfinancingforanewcoalmineisextremely
difficultduetosentimentcreatedbytheParis2015
COP21towardscoal.
Ø Eskomreaching“CoalCliff”ifnotalreadyinit
CoalIndustryandMarket
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RegionalMarket EskomForecast
§ Botswanahasanestimatedcoalresourcesof212Billiontons in
comparisontoSouthAfricawhichhasanestimated30Billion
tons,halfofwhichisintheWaterbergRegion.
Ø CoalisthehighestrevenueearnerintheSouthAfrican
miningindustrywithR131Billionin2017.Botswanais
missingoutonsignificantpotentialrevenue.
§ Botswanahashighgradeandlowcostcoalminingpotential.
Ø Mmamabulacoalfieldshavehighgrade,highyield,low
sulphurandlowashcoalwhichisidealforBoilerapplications
andwouldbepreferredbyregionalconsumerstoSouth
Africancoalproducers.
Ø CoalisidealforpowergenerationandCoaltoLiquids
§ Botswanahasanexportpotentialofatleast15milliontonsper
annumspreadthroughvariousmarketsthatcanbeunlockedwith
adequaterailwayinfrastructure.Thispotentialcansignificantly
increaseifunrestrictedanduncongestedaccesstoportswere
available.
BotswanaCoalPotential
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ZIMBABWE
NA
MIB
IA
SOUTH AFRICA
MAHALAPYE
LOBATSE
MORUPULE
MMAMABULA
BOBONONG
FRANCISTOWNDUKWE
PANDAMATENGA
DUTLWELETLHAKANE
GABORONE
NCOJANEMOIJABANA
SERULE
FOLEY
Distribution of the Karoo Supergroup
Botswana Coalfields
Areas prospected for coalbed methane
LEGEND
LEPHEPHE
Potential Area/zone for Coal/CBM Development
High Potential for Coal Development
§ Botswanawithallitspotentialinbecomingasignificantregional
playerinthecoalindustryhasnotmaterialisedinthepast.
Ø Botswanahasonlyonecoalmineinoperation- Morupule
§ Hereinliestheopportunitytonow developmenttheBotswana
CoalIndustrywiththecurrentdemandshortagesandfuture
outlookoftheindustry.
Ø MinergywillbethefirstopencastmineinBotswana-
Currentlyunderconstructionwithcoalsalesin2019
Ø MaatlaResourcesfollowsshortlywithcoalsalesinQ42019
Ø ShumbaEnergyalsodevelopingtheirfirstproductionmine
§ Toensurethesuccess,sustainabilityandgrowthoftheBotswana
coalindustry,Governmenthasasignificantroletoplay.
Ø EnsuretheinvestmentintotheBotswanaRailways
infrastructureprojectswiththeshortestleadtimeand
partneringwiththeprivatesector
Ø Furtherinvestmentincentivesforroleplayerstonegate
logisticaldisadvantagetoSouthAfricancoalports
Ø Acceleratedregulatoryapprovaltimeframes
BotswanaCoalIndustry
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Contact:JacquesBadenhorst
CEO
MaatlaEnergy(Pty)Ltd
M:+27827808443
MikeNell
COO
MaatlaResources(Pty)Ltd
M:+27828222844
Thankyou
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