02 Jun 2019

Morupule South Resources, a subsidiary of Shumba Energy has commenced development of a 2.5million tonnes per annum mine project to meet the demands of the growing local and regional coal market

This was revealed by Shumba Energy Company, Country Manager, Mr Comfort Molosiwa during a presentation at the Serowe Administrative Authority (SAA) sub-DDC meeting held in Serowe recently.

He stated that the mine would produce quality coal for local and regional markets.

Mr Molosiwa said the Environmental Impact Assessment (EIA) for Morupule South project had started and they had completed the scoping phase, which entailed intensive consultations with the community around the area regarding their displacement.

He explained that the project would unearth more value-chain businesses, adding “we expect property businesses, rentals and SMMEs to blossom from this undertaking”.

He said the project would boost the economy of Serowe /Palapye given that they would focus on the core business of mining coal and selling it, while the other services such as transport, accommodation, catering and security services would be outsourced to local companies to tap into the spill-overs.

He stated that coal is a versatile resource hence the mining project is geared towards taking advantage of the current opportunities in tapping into existing huge coal markets regionally and overseas.

“Our target is to have the mine operating by 2021 as explorations are already complete,” he said.

“After the environmental impact assessment is approval by the Department of Environmental Affairs, we would then be issued with an environmental statement, after which we can apply for surface rights  followed by application of a mining licence leading to commencement of construction of the mine,” he said.

He also said because the Morupule South project would be an open cast mine, farms around that area would be relocated and they had started engaging stakeholders such as the Ngwato Land Board and the affected communities.

Mr Molosiwa explained that compensation would be paid by Morupule South Resources, who is the developer.

Benchmarked against other southern African domestic mines, Morupule South’s mining costs and coal quality is predicted to be one of the lowest in the region.

Members of the sub-DDC, who attended the meeting, praised  the developments, indicating that the expansion would create employment, mostly for youth.

Mr Molosiwa also said businesses in Palapye, Serowe and surrounding villages would be boosted. ENDS