Minergy Coal Limited, the Botswana Stock Exchange listed coal mining company is poisoned to win the highly anticipated 300MW coal fueled power generation plant.
The Botswana Government, through the Ministry of Mineral Resources, Green Technology and Energy Security
(“MMGE”), invited the Company’s subsidiary, Minergy Coal (Pty) Ltd (“Minergy Coal”), and three other selected local bidders to tender for the design, finance, construction, ownership, operation, maintenance and decommissioning at the end of its economic life (minimum 30 years) of a 300MW (Net) Greenfields Coal-Fired Power Plant in Botswana,as an Independent Power Producer (“IPP”).
This forms part of the government’s 11th National Development and Integrated Resources Plan. It is expected that the power plant would be operational by 2026.The closing date for the bid is currently 30 March 2022.
Estimated to cost newly P10 billion the power plant will be the last Government backed coal power generation operation of that magnitude.
Minergy is partnering with Jarcon Power to submit the bid. If successful, Minergy Coal will be responsible for providing coal to the power plant for the duration of the Power Purchase Agreement of 30 years, and other income streams are also being envisaged.
This profitable sale of coal will have the benefit of ensuring a steady cash flow to
Minergy, utilisation of current uneconomical coal seams and diversifying income streams.
“Importantly, Minergy is the only bidder already with an operational mine.” the company Chief Executive Officer Morné du Plessis said in a market update today.