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Botswana grants mining licence to African Energy coal project

Botswana’s ministry of Mineral Resources and Energy has granted a 25-year Mining Licence (ML) to Australian-listed coal and energy, African Energy for its Sese Joint Venture in Western Botswana.

In a statement, the company said the ML covers an area of 51.47km2 and contains 650Mt of raw coal in measured and indicated resources findings.
“The Ministry of Finance and Economic Development approved several fiscal incentives for the project as requested under a Manufacturing Development Approval Order. 

The principal incentives are that the power generation business will be granted a five-year tax holiday from its first year of commercial operation, followed by a preferential 15% tax rate for the life of the project,” read the statement. 

Test-work on Sese coal, the company said, has determined that it is suitable for use in both circulating fluidized bed (CFB) and pulverized coal (PC) boiler technology.

“Fuel specifications have been derived for each boiler technology. Results of coal quality analyses from the infill drilling completed in December 2016 have been received, and will be used to upgrade a portion of the indicated resource to the Measured Resource category,” read the statement.

African Energy said Botswana’s government had granted the joint venture firms a five-year tax break from its first year of commercial operation, and a preferential 15 percent company tax rate thereafter. 

Botswana’s normal corporate tax rate stands at 22 percent.
           



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