- Discussions for licence renewal for land rights for mining underway
- Shumba in talks with local investor group interested in acquiring Morupule South
GAZETTE REPORTER
Shumba Energy Ltd has reported strong progress across its portfolio of advanced energy projects that are aimed at addressing Southern Africa’s energy deficit.
In its latest quarterly market update (30 September 2024), Shumba highlighted its commitment to deploying state-of-the-art, low-emission technologies in pursuit of sustainable and scalable energy solutions.
The company, known for its dual focus on traditional and renewable energy sources, outlined several core objectives.
“Our main areas of activity include the production and export of thermal coal, the development of renewable energy sources, and the exploration of high-efficiency, low-emission thermal power generation,” the report stated.
Solids to Liquids technology
“We are also pursuing short- to medium-term production of liquid fuels through innovative Solids to Liquids (STL) technology with experienced partners.”
Among its most advanced initiatives, the 100 MW Tati Solar Project near Francistown stands out. Shumba holds a 75 percent stake in this solar photovoltaic (PV) venture, which is expected to become a key renewable energy contributor by 2025.
Progress on the project is accelerating, with financial closure expected soon. “We are pleased to report that our flagship 100 MW solar PV project near Francistown, Botswana, is making steady progress,” the company said.
Cautiously optimistic
“Despite the complexities involved, we maintain a cautiously optimistic outlook on achieving this critical milestone.”
Shumba emphasised that constructive stakeholder engagement has helped accelerate timelines for financial closure. In particular, talks with lenders have underscored a strong commitment to push the project forward.
“Over the past quarter, we have made significant progress toward financial close,” Shumba noted. “Our proactive management of stakeholders has heightened urgency to meet timelines, with positive engagements – especially with lenders – showing a strong commitment to expedite the process.”
Additionally, Shumba reported an agreement to sell emission reductions generated by the project, creating an extra revenue stream that enhances its financial viability.
Coal and hydrocarbons
Another key project under development is the Sechaba Project, wholly owned by Shumba. Holding prospecting licences PL 053/2005 and 218/2016, the Sechaba Project is advancing in its discussions with potential investment and operational partners.
Shumba emphasised the vital role of coal and hydrocarbons in ensuring reliable energy access across the region, despite shifting global perspectives on fossil fuels.
“The significant impact of the Future Coal organisation … promoting the unavoidable reality that fossil fuels are fundamental to economic growth and human flourishing cannot be overstated,” the company asserted.
Shumba’s strategy involves using the Southern African Power Pool (SAPP) and Botswana Power Corporation (BPC) infrastructure to facilitate power distribution agreements.
Middle Eastern funding
The company’s Morupule South Resources Project, where it holds a 97.5 percent interest, also saw progress in the latest quarter. The Morupule South licence, which was valid until 30 September 2024, covered land just south of Morupule Coal Mine.
Discussions for licence renewal are already underway as Shumba navigates the complexities of securing land rights needed for mining operations.
The company is also in talks with a Botswana investor group, supported by Middle Eastern funding, interested in acquiring Morupule South.
Reflecting on its growth strategy, Shumba reaffirmed its commitment to balancing traditional and renewable energy development to meet Southern Africa’s diverse energy needs.
“Coal and hydrocarbons still very much play a role in ensuring a sustainable base load for economic development,” the report stated, underscoring Shumba’s pragmatic approach in balancing sustainability with economic demands.