Australian company explores power plant chances in Southern Africa

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Australian mining company African Energy Resources announced plans Friday to explore power plant opportunities in Southern Africa.

African Energy said in its quarterly activities report that it continues to progress its power development program at its Sese coal project, 50 km south of Francistown, Botswana's second biggest city in the northeast.

The company is currently awaiting a formal response from the government of Botswana to the proposed coal-fired power plant.

"The company will be continuing to progress its power development program at Sese and advancement of other power supply opportunities in the southern African region," said the company.

According to the company, the Sese Integrated Power Project will comprise one or more 300 MW power stations, each with a dedicated 1.5mtpa coal mine plus all related infrastructure required to deliver electricity into the Southern African Power Pool grid.

Last year, African Energyexecuted a joint development agreement with ACWA Power International for the development of one or more300 MW or larger power projects to be located at the company's Sese coal deposit in Botswana.

The company says coal for the power stations will be provided from Sese Block-C which currently contains 330 Mt of coal in measured resources and is thus capable of supporting multiple power projects.

African Energy has a resource of to 6.2 billion tonnes of thermal coal in Botswana while ACWA Power is an international power generation and water desalination developer, investor, co- owner and operator located in Saudi Arabia.

ACWA has more than 20 plants spread over eight countries across the globe. ACWA's plants at advanced stage of development are an 850 MW gas fired plant in Turkey and a 300 MW coal fired power plant in Mozambique.

African Energy Resources is already a developer of three coal resources in Botswana estimated to be 6.2 billion tonnes and has registered interest to supply South Africa with 300 MW of power.