Masama Coal Mine

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The Masama mine is an open-cast and underground coal mine, owned and operated by Botswana-based coal company Minergy Limited, near Gaborone, Botswana.

The mine is the first open-cast coal mining project in Botswana and (as of June 2022) is one of only two operating mines in Botswana, the other being the Morupule coal mine. Both mines have opened as Botswana seeks to diversify its mining sector away from diamonds, the mainstay of its economy.

Location

The satellite image below shows the exact location of the mine in Inkangwe, Botswana.

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Background

The Masama mine is located on the southwestern edge of the Mmamabula Coalfield in southern Botswana. Minergy acquired the project from Shell Coal Botswana and carried out extensive exploration and drilling on the property between 2012 and 2017.[1] In August 2019, the mine produced its first saleable coal, which was exported to South Africa and Namibia.[2] Minergy’s wholly-owned subsidiary, Minergy Coal, holds the mining license.[1]

For the first 25 years of its life, Masama will be a conventional open-cast mining operation using trucks and shovels. At a later stage, Minergy has plans to carry out shallow underground mining involving drill and blast operations to extract the G and K coal seams.[1] The estimated life of the mine is 100 years.[1]

Its coal targets South Africa's industrial markets, including the cement and lime markets, as well as seaborne thermal coal markets.[3]

The mine briefly ceased operations from March to April 2023, due to outstanding debts owed to mining contractor, Jarcon Open Cast Mining, which operated Masama's mining tools.[4] According to reports, weakening coal prices led to the payment delinquency.[5]

Project Details

  • Operator: Minergy Coal[2]
  • Owner: Minergy Limited
  • Location: 60 km (37 miles) northwest of Gaborone, Botswana[2]
  • GPS Coordinates: -24.053219, 25.8876081 (exact)
  • Status Operating
  • Production: 125,000 tonnes per month (1.5 million tonnes)[3]
  • Total Resource: 376 million tonnes[3]
  • Total Reserves: 69.7 million tonnes[3]
  • Coal Type: Bituminous (thermal)
  • Mine Size: 120 km2
  • Mine Type: Surface and underground
  • Start Year: 2019
  • Source of Financing: Botswana Development Corporation (BDC), Minerals Development Corporation of Botswana (MDCB)[6]


Articles and resources

Related GEM.wiki articles

References

  1. 1.0 1.1 1.2 1.3 NS Energy, Masama Coal Project, accessed June 2022
  2. 2.0 2.1 2.2 Cite error: Invalid <ref> tag; no text was provided for refs named R
  3. 3.0 3.1 3.2 3.3 2022 Annual Report, Minergy Coal, accessed October 2023.
  4. "Mining Operations at Masama Coal Mine Start Up Again", Minergy Limited, 31 March 2023.
  5. Brian Benza, "Botswana's Minergy seeks govt bailout after halting coal mining ops", Reuters, 8 March 2023.
  6. "Minergy Makes Good Progress With Masama Coal Project", Minergy website, August 7, 2019.