Thato Moseki
29 October 2009
Gaborone — Australian integrated energy developer, Aviva, has spent more than P3.3 million bringing its Mmamantswe coal project to Bankable Feasibility Study (BFS) stage, thus fulfilling the requirements of an agreement with the owner of the project's prospecting licences.
Aviva is pursuing the development of a coal mine supplying four million tonnes of coal per annum to an integrated power development pumping out at least 1,000 megawatts (MW). The Australian company also plans to produce between six and 12 million tonnes of coal per annum for export.
According to Heads of Agreement signed between Aviva and Mawana Minerals in June 2007, Aviva was required to spend US$0.5 million (P3.3 million) over 18 months upon which Mawana would grant the Australian company the exclusive rights to earn a 90-percent interest in the project. The Australian company would also be required to undertake a BFS to finalise the agreement.
Under the deal, Mawana would retain a 10-percent interest in the project free of cost with the right to take up a further 15 percent on a fully-funded basis.
Last week, the Australian company announced it had completed the spending required under the agreement and was now in a position to move towards the BFS.
"However, the partners are discussing ways to accelerate the earn-in agreement to enhance the project certainty for potential partners, customers and regulators," Aviva said in its Annual Report for 2009.
With a resource estimated at 1.3 billion tonnes of coal, Aviva hopes to develop Mmamantswe into an integrated coalmine and power station possibly linked to the Southern African Power Pool (SAPP) and supply lucrative markets such as South Africa.
The P3.3 million spent thus far on the project includes drilling, coal quality and combustion tests, water exploration, transmission studies, environmental approvals and a mine Pre-Feasibility Study currently underway ahead of the BFS.
According to Aviva, a successful resource and reserve drilling programme has enabled the company to conduct coal quality and combustion tests for Mmamantswe with encouraging results. Particularly exciting for the developers are results indicating that Mmamantswe coal is well suited for base load power generation as it exhibits excellent ignitability and flame stability at full load.
In addition, studies this year have shown the Mmamantswe coal to have low sulphur dioxide emissions, which is a major advantage as it means emission standards can be met without the installation of additional plants.
Tests also showed that the carbon remaining in the coal ash was very low, making the ash suitable for concrete and ash applications, while dust collection efficiency was very high.
Water studies during the year have shown that the 25 wellfields drilled are capable of producing 8.3 gigalitres per annum, which is more than double the water requirements estimated for the planned 1 000-megawatt power station and coal mine. A gigalitre is equivalent to one billion litres.
Aviva has also completed the first stage of a transmission study involving Botswana Power Corporation and Eskom, with the latter submitting a proposal for a detailed study.
"The study has identified a range of solutions under various scenarios which suggest that the incremental connection cost to evacuate power from Mmamantswe to the Southern African Power Pool network is relatively low," Aviva's Annual Report said.
Aviva said the coal mine's Pre-Feasibility Study was almost complete and would facilitate a move to a reserve estimate and subsequent BFS.
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