JV leads to Shumba holding 80% in CoPet

2019-08-30T11:18:15+00:00 August 30th, 2019|News|

Botswana coal mining company Shumba Energy has concluded a joint venture partnership which has led to the company holding 80% of the equity in Coal Petroleum (CoPet).

Shumba will convert coal into liquid fuel. Image credit: Library

Shumba will convert coal into liquid fuel. Image credit: Library

CoPet is a private Botswana company focused on the development of a commercial scale liquid fuels production facility, called ‘Project Tsosoloso’. CoPet has partnered with Powerchina International Group and Wison Group, both leading Chinese Engineering Procurement and Construction (EPC) companies with a proven track record and recent experience in the coal-based power & Coal to Liquid (CTL) technologies for the execution of the Bankable Feasibility Study (BFS).

They are in the process of completing the technical aspects of the BFS to a detailed and accurate capital and operating cost estimation required to secure the project execution funding. Shumba has also entered into a binding Coal Supply Agreement with CoPet to guarantee supply of all the feedstock that would be required for the life of the project from the Mabesekwa coal resource and project situated about 60km south-west of Francistown. CoPet is working with Shumba’s specialists for the integration of the Mabesekwa site geotechnical, regulatory permitting and environmental impact assessment activities. CoPet now plans to build the proposed CTL facility at the Mabesekwa site and CoPet will now become a managed subsidiary of Shumba.

The baseline technical and economic assessment of the envisaged commercial scale CTL plant facility and the technical direction and development of the project within CoPet has been completed by Holland and Hausberger, a 10% shareholder in CoPet. HH is an experienced project development and consulting engineering company in the petrochemical and natural resources conversion process space and have been involved with the project since conceptualisation and also completed the pre-feasibility study (PFS) issued in 2014.

Through Powerchina International and Wison the BFS is underway following which the project will initiate the Front-End Engineering Design (FEED) and then it is envisaged will execute the balance of the project under a Lump Sum Turnkey project basis to commercial production.