Debswana focuses on Morupule expansion
WANETSHA MOSINYI
Staff Writer
| Friday June 6, 2008 00:00
In its 2007 annual review released last week, the company says should the colliery win the contract to supply the new power station, production of the mine will be increased to approximately 4 million tonnes per annum.
'Further expansion potential is also being investigated,' the report says. Consequent to the plans being made to increase the output of the mine, Morupule Colliery's mining lease area has been expanded. The reserves available to be mined have subsequently increased by some 1, 110 percent. The company says the current lease now expires in 2032. The colliery also has prospecting rights over an area of 642 square kilometres.
In 2007, coal sales from the colliery dropped to 766, 889 tonnes from 940, 086 tonnes in 2006 as a result of poor off-take from major customers, the company says.
'The price adjustments provisions in sales contracts with these customers led to the recovery of a portion of the resultant loss of revenue.'
However, a drop in export sales was offset by a corresponding increase in local sales during the year under review.
The construction of the wash plant, which was launched early this year, occupied most of 2007. The company says early results are promising and that the wash plant is expected to contribute significantly to the company's performance from 2008 onwards.
Debswana's Deputy Managing Director (Technical) Sean Brennan says the coal wash plant adds a lot of value to the coal produced at the colliery.
The colliery has vast coal reserves while the region continues to experience power shortages. However, Brennan says Debswana's immediate focus is on expanding the BPC Morupule Power Station rather than for regional supply.
The last update on the expansion of Morupule Power Station was that two Chinese companies were vying for the tender. Government intends to fast-track and offer incentives to the contractor to speed up the first phase of the 300MW project.
The whole country is currently experiencing one of its worst power outages as winter demand adds pressure during peak periods.
The power shortages are made worse by routine maintenance at Mozambique's Caborra Bassa power station, which supplies Botswana with 35MW, and the technical problems at Morupule Power Station.