Jindal Group acquires CIC in Botswana
Mmamabula Coalfield
Jindal Mmamabula Energy Project (JMEP I)
Jindal Mmamabula Energy Project (JMEP I&II)
Coal to Hydrocarbons Project
Export Coal Project

As Botswana continues its development journey through Vision 2030 and Millennium Development Goals (MDG), Jindal Africa has plans to be at the forefront as true partners, thus setting the company’s plans and priorities to align with the country’s national goals.

Jindal Africa intends to have a strong presence throughout the country and substantially contribute to the country’s economy – through citizen empowerment, job creation and community enlistment. Our fully fledged corporate office is located in Gaborone, with dedicated technical support from the Johannesburg head office.

Our aim is to operate open cast mines in the rich coalfields of Mmamabula, as well as a power plant. The mine’s development will meet the demands of 600MW power station and export region coal markets, with the potential to employ more than 3000 people.

Jindal Group acquires CIC in Botswana

Jindal BVI Limited (JBVI), a subsidiary of steel major Jindal Steel and Power Limited (JSPL) has acquired Canadian listed coal Company CIC Energy Corp. (CIC) for about US$116 million by way of a merger of JBVI and CIC.

Date: 06 September 2012

Jindal Group acquires CIC in Botswana

JSPL’s acquisition of CIC Energy is worth $116 million.

The acquisition will give JSPL access to CIC’s high quality thermal coal resources in SE Botswana

The Minister of Minerals, Energy and Water Resources of Botswana has already approved the change of control from CIC to JBVI.

Jindal BVI Limited (JBVI), a subsidiary of steel major Jindal Steel and Power Limited (JSPL) has acquired Canadian listed coal Company CIC Energy Corp. (CIC) for about US$116 million by way of a merger of JBVI and CIC.

The Minister of Minerals, Energy and Water Resources of Botswana where CIC has its coal mines, has already approved the change of control from CIC to JBVI and all other approvals for the merger have already been granted and the merger certificate was issued on 05 September 2012, marking the completion of the acquisition.

The deal has provided Jindal Africa access to CIC’s high quality thermal coal in Greater Mmamabula coalfield in SE Botswana which is estimated to be 2.7bn tonnes of measured and indicated resources. This will also give Jindal Africa the opportunity to tap the highly lucrative and power deficient South African Development Community (SADC) countries and given the huge resource, will also provide an opportunity to set up a Coal to Hydrocarbons project.

“This acquisition makes Jindal Africa the frontrunner for building power plant in Botswana for supply of power to Botswana/South Africa and SAPP power pool. This further reinforces Jindal’s philosophy in growing the footprint in Africa, developing the projects in the continent and thus creating sustainable job opportunities. ” said Jindal Africa CEO, Mr. Ashish Kumar

About Jindal Africa

Jindal Africa is a part Jindal Steel and Power Limited (JSPL), which in turn is part of the US$17 billion, diversified O.P. Jindal Group. With a turnover of US$ 3.5 billion, this industrial conglomerate is a leading player globally in the steel, power, mining, coal to liquid, oil & gas, and infrastructure sectors. Recently, JSPL has expanded its steel, power and mining businesses to various parts of the world particularly in Asia, Africa and Australia.

Jindal Africa currently is involved in numerous exploration and mining operations in Africa: South Africa (coal and iron ore); Mozambique (coal); Madagascar (limestone);Namibia (Iron Ore)

In Mozambique, our coal project is operational with 5 MTPA capacity mines and plant running. We are exporting coal to our India operations and also suppling to local southern African market. Mozambique project employs more than 3000 locals directly/indirectly.

Jindal recognises that Africa is endowed with great mineral wealth and hardworking committed people. Its intent is to pass on its inherent knowledge and experience to the continent by enriching lives, creating job opportunities and adding value. Jindal Africa Investments (PTY) Limited, Jindal Africa, 22 Kildoon Road, Bryanston 2021, South Africa, T: + 27 11 706 8420 F: +27 11 706 8244 W: Part of Jindal Steel & Power Limited
– www.jindalsteelpower. com.

“We come as a foreign entity but we want to work as a local company” – CEO, Mr Ashish Kumar

Issued by:

Neeraj Saxena
Country Head
Jindal Botswana (Pty) Ltd.
Private Bag 00350, Gaborone, Botswana

Mmamabula Coalfield

Location & Landholdings

Jindal’s coal resource is located in the Mmamabula Coalfields of south-eastern Botswana, adjacent to the country’s main road and rail corridor which links the country’s capital, Gaborone, with its second largest city, Francistown.

The Mmamabula Coalfields form the western extension of South Africa’s Waterberg Coalfield, which contains approximately forty percent South Africa’s coal resources, along with Eskom’s 3,690 MW (net capacity) Matimba power station and Exxaro Resources Limited’s 19 million sales tonnes per annum Grootegeluk coal mine.  Exxaro has also been contracted to supply a further 14 million tonnes per annum to Eskom’s 4,800 MW Medupi power station, now under construction.

The two prospecting licences, RL2009/1R (also referred to as the Central Block), and PL11/2004 (divided into the Eastern and Western Blocks) are 100% owned by Jindal’s subsidiaries. Both Retention Licences were converted into Mining License ML2014/9L successfully. The total area for the Mining License is 313 square kilometers (km2).

The 1.3 million tonne per annum (mtpa) mine that will support the planned 300 (Net) MW Jindal Mmamabula Energy Proejct  (“JMEP I”) will be located in the Western Block (PL11/2004) and will utilize about one-third of this block.

Geology, Exploration & Mineral Resources

Since commencement of exploration by mid-2005, up to twelve drill rigs have been active concurrently on Mmamabula Coal Field. In excess of 165,000 metres have been drilled in approximately 2,000 holes and the exploration drilling program is now largely complete.

In March 2011, announced mineral resource estimate to approximately 2.4 billion tonnes as per Table 1.

Table 1 – Mmamabula In Situ Mineral Resource Estimate (D1 + M2 + D2 Upper Seams: Western, Central and Eastern Blocks)

(effective date: March 31, 2011)

Category Tonnage
Measured 2,389.81
Indicated 7.52
Measured + Indicated (total) 2,397.33
Inferred 3.08

The three coal-bearing areas defined within Jindal’s Mmamabula  project area (Western, Central and Eastern Blocks) have drill hole spacings that are typically set at 500 metres (“m”) by 500 m or less.

Of the 2.4 billion tonnes of in situ coal at the Mmamabula Coal Field, work done by mining team indicates that the resource can potentially deliver an extractable tonnage of 1.5 billion tonnes (run of mine).  This estimate is based on applying open cast mining methods over 30% of the area and bord and pillar with pillar extraction underground mining methods for the remainder of the resource.

Based on the analysis that has been performed, Jindal anticipates that the 1.5 billion tonnes of run of mine production could yield, after beneficiation, the following coal products: 112 Mt of thermal coal suitable for domestic on-site power generation and 900 Mt suitable for thermal export coal. This product mix is based on the typical coal qualities suited for these potential markets.

The qualities and quantities of the coal products are estimates based upon the following: interpretation of geologic data obtained from drill holes and other sampling techniques, feasibility studies that derive estimates of cash operating costs based upon anticipated tonnage and grades of coal to be mined and processed, ground conditions, the configuration of the coal seams, expected recovery rates of coal from the seams, estimated sales revenues and operating costs from coal beneficiation activities, anticipated climatic conditions and other factors. No assurances can be given that the indicated qualities or quantities of coal will be produced.  In particular, any change to the quality requirements or change to the mining methods as a result of production cost inputs would impact the coal product quantities.

Based on quality and thickness, three economic coal seams have been identified as the principal economic targets at Jindal’s Mmamabula Coal Field; these are the D1, D2 Upper and M2 seams. On the main Mmamabula PL11/2004 licence, the seams are relatively flat lying and in the areas of economic interest occur at depths of less than 140 m below surface. The D1, D2 Upper and M2 seams have average mineable thickness of approximately five, three and three metres, respectively.

Coal qualities across the Mmamabula licence area are mostly suitable for thermal power generation with raw coal calorific values (“CV”) for the major seams being approximately 20.3 megajoules per kilogram (“MJ/kg”) for the D1 seam and 22.6 MJ/kg for the M2 seam. Work to date by Jindal on the M2 seam, indicates that coal qualities generally increase from west to east, with the potential for higher-quality export coal in the M2 seam of the Western and Eastern Blocks.

Based on current mining cost parameters, approximately 30% of the Mmamabula coal resource could be extracted economically by open cut mining methods and underground bord and pillar mining methods using conventional continuous miners is being planned for the remaining 70%. Alternative mining methods (such as underground long wall extraction) that could further optimize resource utilization are also being investigated.

Washability (beneficiation) tests have shown that for a large portion of the resource, it is possible to beneficiate the coal to produce an export quality coal, as well as a lower quality coal suitable for on-site power generation and/or gasification. The relatively high sulphur contents, which average 1.8 %in the raw coal, could easily be reduced to less than 1% through beneficiation.

Jindal Mmamabula Energy Project (JMEP I)

The Jindal Mmamabula Energy Project (“JMEP I”) is a planned 300 megawatt power station and associated coal mine that is envisaged to be built at Jindal’s Mmamabula Coalfield.

The power is intended for sale to Botswana Power Corporation (“BPC”), Botswana’s national utility, as new baseload power generation is required to sustain the country’s growth.

The cost of the capital equipment and infrastructure for JMEP I is estimated at approximately US$ 1 Billion. The estimated construction time for the JMEP I is anticipated to be approximately 36 months from Financial close.

Jindal is currently considering several alternatives for the development of the JMEP I, however a decision regarding these alternatives remains pending.

Jindal Mmamabula Energy Project (JMEP I&II)

Jindal’s Mmamabula Energy Project (“JMEP”), is a planned 600 megawatt (net) capacity power station and integrated coal mine project in Botswana that is intended to provide power to South Africa. This project remains the most advanced independent power producer (IPP) project that can meet the demand for new baseload capacity in South Africa in the medium term and long term under cross border arrangements.


  • ESIA for 4×171 MW (gross) Thermal Power Plant approved by DEA.
  • ESIA is been done by DigbyWells South Africa.
  • BFS is been completed by Mott McDonalds in 2017.
  • Water rights from Well fields received in range of 18.2 MCM.
  • ESIA for Wellfields approved by DEA.
  • Water Monitoring and Modelling completed by Well Field Consulting in 2017, revised and updated in 2021.

The JMEP is being developed in accordance with the Equator Principles, a voluntary set of guidelines based on the International Finance Corporation’s (“IFC”) environmental and social standards. The IFC is the private sector arm of the World Bank Group and these standards are considered best practice for projects in developing countries. Project comply with all OECD guidelines for environment standards.

Coal to Hydrocarbons Project

With projected fuel shortfalls in Botswana, Jindal’s planned Coal-to-Hydrocarbons (CTH) Project intends to convert coal to low sulphur diesel fuel and associated products.  Above ground coal gasification technology would be used to gasify the coal cleanly, and then Fischer-Tropsch technology is planned to be used to produce diesel fuel and other products.

The Central and Eastern Blocks at the Mmamabula Coal Field are being considered for the CTH Project. Drilling results have indicated that the coal qualities of both blocks are suitable for gasification.

Jindal has vast experience in developing CTG (Coal to Gas) plant and is currently operating a plant in its India Steel Plant operations.

Wood Mackenzie completed an initial market study for the CTH Project in early 2008.  The study assessed the potential demand for the different downstream products that can be produced from syngas and indicated several downstream product opportunities for the Southern African Development Community (SADC) and international markets.

A second phase detailed value-chain study, which included a more comprehensive market study, was conducted by Shell Global Solutions International in late 2008.

A major technical feasibility study for the CTH Project was completed by Jacobs Engineering in mid 2008 and announced in the Company’s news release of August 5, 2008. The purpose of this study was to develop and evaluate viable CTH Project alternatives as well as to provide technical and cost estimates. The results of this study were positive and it concluded that the coal from the Mmamabula Coal Field was entirely suitable for the production of syngas using either the Shell or the Siemens gasification technologies that were evaluated.

The results from two additional technical studies were incorporated into the Jacobs feasibility study. These included a technical study by Toyo Engineering of Japan related to the manufacturing of a specific fuel end-product (dimethyl ether) from the syngas. The third technical study was a pre-feasibility study conducted by a partnership between Lategan & Bouer and VGI Consulting Inc. (both from South Africa) to evaluate a multi-product pipeline from the Mmamabula Energy Complex site to the Gauteng area in South Africa. The outcomes of both of these studies were positive.

Export Coal Project

With continuing demand from power stations around the world for thermal coal, Jindal 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.

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

Jindal along with Transnet and Botswana railway is working extensively on development of Mmamabula-Leplale Rail link, which will give excess to coal miners to heavy haul line to Richards Bay terminal thus opening the export market for Botswana coal.

Jindal has explored the local consumption within South Africa market for Mmamabula Coal and have initiated talks to supply coal to Eskom under the tendering process.