AFR to supply power to ESKOM

SHARE   |   Monday, 07 November 2016   |   By Staff Writer
Sese Power project-3D Model Sese Power project-3D Model

Plans by African Energy Resources (AFR) to develop Mmamabula and Mmamantswe projects for submission of power into South Africa’s 3,750MW cross border IPP procurement are at an advanced stage, the listed Australian developer has reported. The Australian Stock Exchange (ASX) listed company announced this week in its quarterly report that project developments at Mmamabula West include analysis of large diameter cores to provide the basis for determination of a power station fuel specification for each coal seam and amendment of the Environmental and Social Impacts Assessment (ESIA) and Environmental Management Plan to include 600MW of power generation and grid connection. AFR said it also reported that it continued works for the Mmamantswe Project to ultimately deliver a formal submission into South Africa’s cross‐border IPP procurement programme. The Mmamantswe Project, which is 100 percent owned by AFR but operated by a company called TM Consulting, is said to be undergoing a detailed power station design studies.

The project - about 20km from the border with South Africa - is said to have been previously evaluated by Eskom for integration into the South African grid.During the quarter, TMC engaged a number of technical consultants to implement a programme of work designed to among others provide all required information to enable the Company to apply for a mining licence over the coal deposit, and provide all required information to allow TM Consulting to enter into negotiations with South Africa’s IPP office for a power purchase agreement under the auspices of the 3,750MW cross‐border coal fired IPP procurement programme.

Likewise, progress at Sese Joint Venture is reported to be going well with the project shareholder First Quantum Minerals (FQM) having committed three AUD $3 million over the next 12 months for advancement of the project. Works at Sese JV, which is located some 50 km to the South of Francistown, will also cover preliminary geotechnical evaluations of the proposed power station site to assess sub‐surface conditions with respect to footings for the power station (boilers, turbines, generators) and ancillary infrastructure. AFR says it is still awaiting response from the Department of Mines here in Botswana on the assessment of a mining license which will cover enough coal for the initial Sese Power Project and potential future expansions.