MARCH 2012

UTILISING BOTSWANA’S RESOURCES

SHORT-TERM AND LONG-TERM PROSPECTS

Peet Meyer

PC Meyer Consulting

16 April 2013

MARCH 2012

• How extensively have Botswana’s coal reserves been

explored?

• Overview of progress so far – What are the obstacles to

rapid developments in the short-term?

• With Botswana’s infrastructure remaining the vital

concern for those interested in this region’s concern,

what prospects do the next 5 years hold for coal

production?

MARCH 2012

HOW EXTENSIVELY HAVE BOTSWANA’S COAL

RESERVES BEEN EXPLORED?

MARCH 2012

ACTIVE COMPANIES

Company Project

African Energy Resources Ltd : Sese

Aviva Corporation Ltd: Mmamantswe

Asenjo Energy: Mmamabula West and East

Dukwe

Lechana

Tshimoyapula

Continental Coal: Serowe

Kweneng

Debswana Morupule Coal Mine

Hodges Resources Ltd: Moijabana (JV Cancelled)

Morupule South

Jindal (CIC Project): Mmamabula

Nimrodel Resources Ltd: Takatokwane

Shumba Sechaba Thermal Coal Project

MARCH 2012

COAL RESOURCES

• Officially 212 billion tonnes resources & reserves (Chatupa, 1991)

• Geological in situ, economically mineable, > 0.5 m thick, 20% geological loss

included

• Reserves (≥ 21 Mj/kg) 48.6 Bt

Measured/proven (20% accuracy, 0.8 km spacing)

Indicated/probable (0.8 – 2.4 km)

Inferred/possible (2.4 – 9.6 km)

• Resources (≥ 15 Mj/kg) 164.3 Bt

Hypothetical (≥ 10 km, in same geological environment as explored

seams)

Speculative (projected over unexplored area by geological inference)

• Hypothetical & Speculative resources “essentially undiscovered” - Chatupa

MARCH 2012

Moijabana

2406 Mt

5%

Mmamantswe

598 Mt

1%

Letlhakeng

7213 Mt

15%

Dukwe

1604 Mt

3%

Serule

1648 Mt

3%

Mmamabula

23213 Mt

49%

Morupule

9824 Mt

20%

Dutlwe

2070 Mt

4%

Reserves 48.6 Bt

Foley

6860 Mt

4%

Ncojane

4725 Mt

3%Morupule

8248 Mt

5%

Bobonong

179 Mt

0%

Mmamantswe

2300 Mt

1%

Serule

8036 Mt

5%

Letlhakeng

63140 Mt

38%

Dutlwe

69670 Mt

43%

Moijabana

1133 Mt

1%

Resources 164.3 Bt

”Undiscovered” From Company Data

MARCH 2012

MARCH 2012

DECLARED RESOURCES

Company Project Resource (Bt)

African Energy Resources Ltd : Sese 2.40

Aviva Corporation Ltd: Mmamantswe 1.30

Asenjo Energy: Mmamabula West and East 1.10

Dukwe 0.60

Lechana 0.86

Tshimoyapula 1.40

Continental Coal: Serowe 7.00

Kweneng 2.20

Debswana Morupule Coal Mine 2.30

Hodges Resources Ltd: Moijabana (JV Cancelled) 1.70

Morupule South 2.30

Jindal (CIC Project): Mmamabula 2.30

Nimrodel Resources Ltd: Takatokwane 6.88

Shumba Sechaba Thermal Coal Project 1.00

Total 33.34

MARCH 2012

DECLARED RESOURCES

33 000 000 000 Resources Declared

6 600 000 000 20% Mineable

3 960 000 000 60% Destoning

2 376 000 000 60% Extraction

1 188 000 000 50% Yield

594 000 000 50% to 40 Year Power Supply

14 850 000 Annual Power Station Supply

594 000 000 50% to 20 Year Export

29 700 000 Annual Exports

MARCH 2012

OVERVIEW OF PROGRESS SO FAR – WHAT ARE THE

OBSTACLES TO RAPID DEVELOPMENTS IN THE

SHORT-TERM?

MARCH 2012

THE SAME OLD STORY

• Export Infrastructure – Same story since 2006

• Markets

• Lack of synergies between role players

• Lack of power take-off agreements

Everyone is waiting for ESKOM

• Skills

• Funding

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MARCH 2012

WITH BOTSWANA’S INFRASTRUCTURE REMAINING THE VITAL

CONCERN FOR THOSE INTERESTED IN THIS REGION’S

CONCERN, WHAT PROSPECTS DO THE NEXT 5 YEARS HOLD

FOR COAL PRODUCTION?

MARCH 2012

MARCH 2012

• Declare Reserves – be honest about what you have.

How to Plan what is export for future if saleable is unknown?

How much to go on rail?

• Don’t wait on ESKOM – renewables /Medupi/Khusile/Nuclear.

• Is Botswana explored enough?

Measured?

Feasibility Studies?

How much reserves declared?

• Is there confidence in the future?

Do you want to blow more money in Botswana?

Will you get funding for that?

APRIL 2010

THE END THE END