The Republic of Botswana’s Minister of Minerals, Energy and Water Resources, Onkokame Kitso Mokaila, said the event’s name initially surprised him.

“When I heard ‘Africa Down Under’ I was worried,” Mokaila joked at the beginning of his address.

“Africa isn’t down and under, Africa is rising.”

Mokaila spoke of Botswana’s economic growth, fuelled by a thriving diamond mining industry, but said investment in coal was necessary to secure power-generation self-sufficiency and boost the economy through exports.

Botswana’s coal reserves, which Mokaila said were close to 212 billion tons, had historically been mined for domestic power-generation. But he said that over the past few years they had attracted international investment – and last year saw the first load of coal exported from the country.

“There is great demand for coal for energy and it has increased significantly locally, regionally and internationally, and the options for utilization of Botswana coal are excellent,” Mokaila said.

On the home front, the minister said the country had developed two of the four units in a 600MW power plant. It had also put in place a program for the refurbishment and development of a number of other power plants, with tenders and expressions of interest currently extended to the industry.

He added that the government would be releasing 11 more coal prospecting blocks in September to November.

The country is also examining the potential of increasing coal exports, but appropriate rail infrastructure for the land-locked nation is limited and considerable investment is needed.

“We are looking to the private sector to invest in a railway line. The government sector will facilitate this, we are continuing to engage our counterparts in Namibia, but the investment must come from the private sector,” he said.

Mokaila said that of the 1000 prospecting licenses issued in Botswana, 60% were held by Australian companies.

Two of those companies followed the minister’s presentation, shedding light not only on their own projects, but also on the potential end uses of Botswana coal and the opportunities available to sell it regionally for power-generation.

Walkabout Resources managing director Allan Mulligan highlighted his company’s Takatokwane thermal coal project in Botswana, which had an almost 7 billion ton inferred resource.

Mulligan said the country would look to sell its coal throughout the region until “larger infrastructure” was developed.

“Our strategy is to take advantage where possible of increased South African demand for coal from our starter mine, while the larger enabling infrastructure that the minister alluded to is being developed.”

African Energy managing director Frazer Tabeart also spoke about the opportunity for Botswana coal producers to capitalize on regional demand, particularly from South Africa.

African Energy has two coal projects in Botswana, Sese and Mmamantswe. Sese has also been divided into two projects again, with a domestic-focused integrated power project as well as an export driven project on the same site.

“Botswana is predominantly a thermal coal project so we are talking about a market for energy generation.

“The three export markets of relevance to Botswana are China, India and an emerging market in South Africa.”

Tabeart highlighted the demand for coal in South Africa as the country struggles to meet its energy requirements, where he said there will be a continuing role for coal.

“South Africa’s electricity is generated about 80% by coal-fired power stations and while that percentage may decrease, the country is certainly a very large consumer of coal and a very large producer of electricity.”

“There are clear opportunities for Botswana energy producers to sell into the South African market,” Tabeart said adding that African Energy has put in an expression of interest for a power project in the country.

Tabeart also said there were domestic power-generation opportunities in Botswana, with the company planning to make a submission to government for a 300MW coal-fired power plant by November.

Commenting on the infrastructure need for the scale of export Botswana hopes to achieve, Tabeart said that he disagreed with the view some people hold that Botswana coal assets were stranded.

“The existing rail network is very suitable for a start-up operation … and capable of moving 20 million tons of coal with some investment.”

“What that will do is get Botswana on the map as a global coal exporter.”