Sechaba Coal project, which is owned by Shumba Energy is at an advanced stage with an initial open pit mining focused on to supply the local market, the company disclosed recently. The disclosure was made in the company financial results to June 2016.
“The intent is then to follow with development of a substantial underground mine for the long term supply consideration for a 300MWe IPP potentially supplying NamPower Corporation in Namibia,” . reads the statement signed by Chairman, Alan Clegg. “Ultimately a second deeper underground mine project is envisaged in 5 to 8 years’ time for the extraction of the TBS seam purely for export and dependant on the available logistical infrastructure and costs to FOB at a port on the West or East Coast of Southern Africa” The Project Pre-Feasibility study of the project was completed during the 2015 financial year and was subjected to the KPMG valuation.
Shumba Energy, which owns the Sechaba project, hopes to conclude an offtake agreement for local supply of Thermal Coal to BPC and a JDA (Joint Development Agreement) with a strategic partner for the development of the Sechaba IPP in the first half of 2017.
Clegg went on to assure the company shareholders and future investors that although the time frames have extended due to the continued depressed market conditions until the recent reverse, the Sechaba Mine and IPP Project continues with a very clear future.