India's Jindal plans to start building Botswana coal mine in 2022

Alma Metals

19/11/2021 11:51

GABORONE, Nov 19 (Reuters) - India's Jindal Steel & Power
Limited (JSPL)  JNSP.NS  will start building a coal mine in
Botswana's southeastern Mmamabula coalfields in 2022, aiming to
supply the export market and a planned coal power plant, a
company official said.
    The Indian industrial giant aims for the mine to produce 4.5
million tonnes of coal per year. 
    "Work will start next year and develop in phases over two to
three years. Regional demand is increasing and the South African
market has appetite for Botswana coal," Jindal Botswana country
head Neeraj Saxena told Reuters.
    Despite the global shift from coal, Botswana is pushing
ahead with developing its estimated 212 billion tonnes of coal
resources. In April, it shortlisted Jindal, Minergy Ltd
 MIN.BT , African Energy Resources Ltd  AFR.AX  and Maatla
Resources in a tender to build a 300 MW coal-fired power plant.
    At the COP26 climate conference this month Botswana signed
up to a global commitment to reduce the use of coal, but opted
out of a pledge to stop issuing new coal mining licences.
    A last-minute intervention by India and China just before
the conclusion of the climate talks changed a requested coal
"phase out" to a "phase down". https://www.reuters.com/business/cop/was-glasgow-pact-win-climate-time-will-tell-2021-11-14
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    The bidding for the 300MW power plant tender is down to
three after Maatla Resources pulled out, citing challenges in
accessing funding among other reasons. 
    Australia's African Energy Resources is still in the
bidding. The company plans to spin off its coal operations into
an unlisted entity.
    Minergy, which owns the country's only operating
privately-owned coal mine, has also said it will go ahead with
the bid. 
    Botswana aims to increase renewable energy's share of its
electricity to 18% from the current 2% over the next 20 years,
and the coal plant is its only currently planned fossil fuel
based power project.

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UPDATE 24-COP26 in the final hours of climate negotiations   
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 (Reporting by Brian Benza in Gaborone, Editing by Helen Reid in
Johannesburg and Barbara Lewis)
 ((Helen.Reid@thomsonreuters.com; +27 66 156 5214;))