Shumba Coal, the budding energy developer and junior explorer, said it has executed Heads of Agreement with Mulilo Renewable Project Developments (Pty) Ltd for the joint development of the Mabesekwa Export Independent Power Plant (MEIPP) at the Mabesekwa Coal Project. The project is aimed at taking part in the South African Coal Base Load IPP programme.
The Botswana Stock Exchange listed company revealed that the MEIPP will be a coal-fired power plant with a captive coal mine. It said within a two month period following the signing of the agreement, the parties intend to enter into a comprehensive Joint Development Agreement (JDA) which shall include detailed conditions of the Partnership.
“During this period the parties will only negotiate exclusively with each other. Additional developments will be forthcoming and shareholders will be kept appraised accordingly.”
Shumba’s Chairman, Alan M. Clegg said the signing of the HOA with Mulilo is a further landmark development in Shumba execution of our stated strategy and a further testimony to the discipline of management in matching our assets and projects with the best partners under stressed market conditions.
“Mulilo has a first class track record of delivery which matches Shumba culture and this will I believe now translate into the creation of a new and strong economic contribution to the Southern African energy market for sustainable development, while creating strong value for our shareholders and all stakeholders alike.”
Mulilo is an Independent Power Producer (IPP) developer and investor which was originally formed in 2008 and works closely with project developers, technology providers, regulators and investors to source and develop premier energy projects.
It has developed over the last few years a portfolio of circa 400 MW of grid-connected power plants under various IPP programs run by the Department of Energy in South Africa.
MEIPP will be a 300 MW (2 x 150 MW) gross capacity and it will have Minimum 260 MW net supply to grid after auxiliary and mine consumption. It is near an associated coal mine with ~1.2 mpta capacity, dedicated to the export power plant.
Shumba also said the processing of the renewal of the prospecting license number PL053/2005 is still to be finalised by the Ministry of Minerals, Energy and Water Resources of Botswana. As the six months extension previously provided on the license is due to expire this month, “we have requested the Ministry for an update on the renewal of the license, and we expect a response to our request soon. Further developments will be communicated to shareholders of Shumba Coal and the public in general in due time.”