June 5, 2014
The Directors of Shumba Coal (BSE:SHU) (SEM:SHU) are pleased to report that the Company has concluded power station design and selection studies which were accompanied by preliminary financial modelling. Clean Coal Technologies have been used in the design to ensure that World Bank emission standards are met by the Power Station. These studies are a follow on from the power transmission scoping study into transmission solutions describing options available to export power from the Sechaba Energy Project ('SEP'), to be sited on Shumba Coal's Sechaba thermal coal resource, into the region, which was concluded earlier in the year.
Shumba Coal is in the process of developing a 300MW coal fired power plant (SEP). The power plant will be strategically located in relatively close proximity to the A1 national road and other important infrastructure, such as a railway line and 400kV substation for possible integration.
Key SEP Attributes:
- The Sechaba coal resource and good qualities are well suited for power generation.
- The low sulphur Sechaba coal would reduce non-fuel power plant OPEX by 30-40% compared to other alternatives.
- The SEP project economics indicate a competitive and robust project, capable of a low electricity sale tariff.
- The SEP has an excellent location in relation to a High-voltage power grid and grid substation, Developed road infrastructure, nearby Railway lines, Communications infrastructure, Water sources, and the Town of Palapye, with its large local workforce.
- The SEP is capable of supplying power domestically and regionally using existing power transmission infrastructure.
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Shumba Coal is a Botswana Stock Exchange and Stock Exchange of Mauritius listed Exploration Company whose focus is the acquisition and development of highly prospective energy exploration licenses in Botswana. Currently its flagship asset is the Sechaba Project which has approximately 1 billion tonnes of JORC compliant thermal coal resources. Due to its proximity to the A1 highway, railway line and the existence of large resources of ground water and two river basins, the project is potentially well situated for the development of a mine and a power station.
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