First Quantum Minerals Ltd. has committed to spend AUD $3 million on work programmes to advance the Sese integrated power project, further to their agreement of January 2015. First Quantum has a Joint Venture Agreement with African Energy to develop power generation capacity at Sese—a Botswana based energy project.
Sese Coal Botswana-Location
“Additionally, a 12‐month extension, to 12th July 2017, has been agreed for the investment of the remaining AUD $7 million required to complete FQM’s earn‐in for 75% interest in the Sese joint venture,” African Energy relayed the message.
The AUD $3 million commitment will be used to undertake a number of programmes which will commence immediately including additional large diameter drilling to collect approximately 1,000kg of coal for combustion testing and physical handling test work.
“This will lead to the development of the fuel specification for the proposed power station, and finalisation of the coal handling and processing flowsheet”.
The funds will also be used for preliminary geotechnical evaluations of the proposed power station site to assess sub‐surface conditions with respect to footings for the power station (boilers, turbines, generators) and ancillary infrastructure.
Environmental approvals will also be update to allow up to 450MW of power generation (staged development of 2 x 225MW units) and the associated coal mining and processing and update the mining study to meet the requirements of fuel delivery for a 450MW integrated power project.
The programmes include preliminary power station design and layout, negotiations for power off take agreements with interested parties, execution of the Water Supply Agreement for the project, hydrogeological studies at the mine site to characterize aquifers to allow mine design and aquifer management plans to be advanced, and commencement of early site works to include an upgraded access road and preliminary setting of camp facilities.
A diamond drilling to test the continuity and quality of the Seswe limestone deposit for use as a sorbent to reduce airborne sulphur emissions from the proposed power station will also be conducted.
