Botswana coal project to benefit from heavy-haul rail projects

17 April 2014

African Energy Resources’ (ASX:AFR) coal project in Botswana stands to benefit from two major rail projects being developed, one aimed at transporting coal from Botswana into South Africa to be used by state‐electricity generator Eskom.

There is a massive 2.5-billion tonne coal resource base at Sese. AFR also acquired the 2.4-billion tonne Mmamabula West Coal Project in south‐east Botswana which increases total in‐situ resources to 6.2 billion tonnes of thermal coal in Botswana.

Botswana‐South Africa Rail Link

Transnet Freight Rail recently announced that a 105-km heavy‐haul coal rail link between Botswana and South Africa will commence construction next year as part of a R300-billion infrastructure investment programme initiated by TFR.

The line will be designed to carry 40‐80 million tonnes per year. “We are planning to develop the Richards Bay Coal Terminal to support the expected [volumes] from Botswana and the Waterberg coalfield in South Africa”.

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