Export Coal Project

With continuing demand from power stations around the world for thermal coal, CIC Energy is pursuing the opportunity to export seaborne traded steam coal from the M2 (lower) coal seams of its Mmamabula Coal Field in Botswana.

Key elements of the Export Coal Project include:

  • Dedicated mines with multi-product (double stage) beneficiation plants, as well as a rapid rail load-out, envisaged to be built at the Mmamabula site to accommodate the production of 24 million tonnes per year for 35 years.
  • An approximately 1,500 kilometer Trans Kalahari Rail line ("TKR"), constructed by a transportation consortium. Currently, the preferred rail route is to the west coast of southern Africa, through Botswana to a Namibian port.
  • At the Namibian coast, a coal terminal and loading facility is envisaged to be built to be able to load large ocean going vessels at a high rate to minimize demurrage cost.

Pre-feasibility studies on the mines, washing plants, rail, coal terminal and port were completed in 2009 by Aurecon.

The governments of Botswana and Namibia are working together on feasibility study on the TKR project, and the first phase of this study is completed.  

In October 2010 these two governments jointly issued an Expression of Interest ("EOI") inviting the private sector to bid on the development of the TKR.

Trans Africa Rail Consortium, which includes CIC Energy, submitted a response to this EOI, along with over 30 other parties. All parties are awaiting a response from the government.