02 May 2022

The pursuit of an export-led economy is shaping up, with Morupule coal mine being among the many local businesses to recently explore the global market.

The exportation of Morupule mined coal as an aggregated consignment to a global coal trader in Maputo, Mozambique who will then determine its destination in the Asian and European resonate with President Dr Mokgweetsi Masisi’s endeavor to drive economic growth and create sustainable employment.

Morupule  coal mine corporate affairs manager, Ms Boineelo Seitshiro revealed in an interview that the first trail train carried 40 wagons of export grade coal at  2 000 metric tons  and that the current exports were expected to yield approximately P100 million.

She said the exports thus placed Botswana coal in the global market and create a new pathway to a new foreign currency earner.

Though the coal market was cyclical like all bulk commodity markets, Ms Seitshero remained upbeat that the Botswana explored the global market at the right time when the cycle was at peak prices, perhaps the highest they have ever been.

She explained that the mine has recently launched the ‘Motheo project’ with the aim to set the foundation for global exports.

 “The current mine production capacity is 2.8 million tons per annum, of which 2.4 million tons per annum  is for local power generation and the balance is for regional exports. 

The primary objective of Project Motheo is to increase regional exports to 1.8 million tons per annum, whilst creating a platform upon which offshore exports can be developed,” she said.

The total envisaged exports under Project Motheo, she said were expected  to  be between 1.2  million to 1.8 million metric tons annually.

Ms Seitshiro highlighted that Morupule coal resource was one of the world’s best remaining bituminous coal adding that recent technical tests with one of the world’s leading boiler manufacturers showed that the coal combustion characteristics were equivalent to grade one coals in South Africa, with even better emission parameters.

This, she said was a key competitive aspect qualitatively, in the era where emissions were a key consideration in energy generation. “A global benchmark of Morupule coal quality parameters against seaborne traded coal places it amongst the best on many of these. 

It has some unique characteristics where the coal has no propensity generation of acid mine drainage, a unique property indeed where most coal resources can leach into acidic run off that can cause groundwater contamination,” she stated.

She state that the export coal was delivered via Botswana Railways and its counterparts in the neighbouring countries.

“Bulk coal trade requires sizeable operations with track record and partnerships that bring value to the table in form of well-structured financing of the deal, rail transport and port access. 

These are key value adds which many local companies are only beginning to develop,” she said.

She noted that the transportation of bulk commodities often presented higher revenues for logistic companies, making such as a significant deal for Botswana railway as it is for Morupule coal mine.

It is further worth noting that the exportation of coal to the global market calls for the speeding up of the tripartite agreement between Botswana, Zimbabwe and Mozambique for the development of the heavy haul rail line.

Nonetheless, this is happening within the constrained environment where Morupule mine and Botswana producers must rely on infrastructure that is not totally enabling, as well as reliance on other countries for access to ports. 

Therefore, the mine’s approach remains circumspect whilst undertaking efforts to open up new supply routes and markets so that it could build for the long term as opposed to chasing short term gains. BOPA