The company is planning for production in Stage 2 to ramp-up to 4-5Mtpa in 2015 and stages 3 and 4 to reach between 20-30Mtpa via expanded exports.

The company is about to start negotiating with Botswana’s Ministry of Transport and Communications and Botswana Railways to establish an economic rail tariff for the transport of coal to Maputo.

Specialist rail and port consultants have been engaged to evaluate options to increase the capacity on the existing infrastructure and will also be working closely with both parties to seek efficiency improvements on the network.

African Energy could benefit from the regulatory environment in Botswana which is seeking to encourage coal mine and infrastructure development.

“The Botswanan government has announced a national coal ‘roadmap’,” the company said in its latest update.

“The highest priority is to be given to exports of coal and electrical power. The government will establish a dedicated coal coordinating unit by May 2012 and the identification of strategic partners for resource and infrastructure development.

“Infrastructure development plans [are to be ready] by 2017.”

A regional marketing program by African Energy is also underway with an experienced consultant appointed to take Sese coal to the market, the company said.

African Energy will be targeting sales to mine site power stations, Ni-Cu smelters, brick works, cement factories.

A bulk sample will provide approx. 2000t washed coal (5000-5500 kcal/kg) for marketing.

There are also opportunities to significantly expand size of regional market through selling cheap coal with low supply risk, the company said.