Louis Coetzee, CEO of Kibo Energy. Picture: HETTY ZANTMAN
Louis Coetzee, CEO of Kibo Energy. Picture: HETTY ZANTMAN

JSE-listed Kibo Energy has joined forces with Botswana’s Shumba Energy to develop a network of coal projects in SA’s northwesterly neighbour.

The company, which also trades on London’s AIM, said it had “reorganised” its Mabesekwa Coal independent power project in Botswana and, together with Shumba, will develop a coal mine, as well as a power plant that will feed Shumba’s game-changing synthetic fuels project.

For Kibo, the move will not only double its power project portfolio in Botswana but will lower the project development and execution risk, CEO Louis Coetzee said. It presents an opportunity for a shorter and faster route to revenue generation, he said.

“With the strong local and international support, and supply agreements already in place, we are exposed to a much larger opportunity in addition to what we are already developing in Botswana, further strengthening our existing relationship with Shumba,” he said.

Before the deal, Kibo held an 85% interest in the Mabesekwa Coal independent power project, which will develop a 303-million ton coal resource and 300MW power station in Botswana. The stake was bought from a Shumba subsidiary in 2017 in exchange for 28% equity in Kibo.

Shumba, meanwhile, acquired 80% of Coal Petroleum, which is developing a petrochemical plant to provide Botswana with up to 80% of its domestic fuel requirements, with an aim to later supply the Southern African market at large. Botswana has abundant coal resources and with the use of coal-to-liquids technology, the project aims to provide fuel supply security to the country, which imports more than 1.2-billion litres of petroleum products a year.

On completion of the announced agreement, Kibo will hold up to a 40% interest in an enlarged project with a 761-million tons coal resource that will supply its Mabesekwa power station, in which it retains its 85% interest, as well as another new 300MW power plant in which Kibo will have a 35%-40% interest and which will exclusively provide energy to Coal Petroleum’s new petrochemical plant.


Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.