Botswana Stock Exchange (BSE)-listed Minergy Limited, a coal mining and trading company which owns 100% of the 390-million tonne Masama Coal Project in the Mmambula Coalfield, showed progress made towards the building of the mining operation, including the new washing plant.
Advancement has been made since the company was granted a mining license earlier this year. Minergy, which listed on the BSE in April 2017, is seeking a listing on the United Kingdom’s Alternative Investment Market during 2019.
“While Minergy is still in the development and exploration phase, we’ve made considerable progress towards full operational status, and have also invested in infrastructure, including offices in Medie and Lentsweletau,” said Andre Bojé, CEO of Minergy.
In addition to breaking ground and having contractors start work after the mining licence was granted on 28 August 208, Minergy is actively engaging the local communities about job creation and upliftment programmes, including improving the school and the clinic in the village closest to the mine, Medie, as well as bringing in electricity.
The mining contract was awarded to Jarcon, a joint venture between IPP, a South African company, and Giant Plant, a Botswana company, whole the Build-Own-Operate-Transfer contract for the washing plant was awarded to Pentalin Processing. Contracts for the provision of site and bush clearing, civil works, power reticulation, water and waste management, road construction and weighbridges are also in various stages of appointment.
Bojé said that both Botswana and Minergy have a significant role to play in fulfilling the increased demand for coal, with four million tonnes of coal exported from South Africa to the African continent in 2016, which is forecast to rise to 38 million tonnes by 2030. The thermal coal price has also increased 33% over the past 18 months, making it one of the world’s top five highest-performing commodities.
With Minergy looking to list on AIM, the sustained buoyancy in the coal market bodes well for the mine, and according to Bojé is set to continue well into the future, given global demand. “During the past 18 months, thermal coal prices increased by 33%, making it one of the world’s top five highest-performing commodities.”
He added that for investors looking to invest in coal, now is the right time. “The price of coal is rising, there is a deficit in supply and a strong demand, especially in the developing world, which is driving up the prices and keeping them high.”
Minergy is strategically placed with a quality product, an outstanding resource, capable management in an environment of rising coal prices – all underpinned by regional and international demand.