Asenjo Energy Profile

Nearly 10Bt [JORC-compliant] export and domestic quality thermal coal resources identified, providing a significant long-term strategic supply of thermal coal

• Potential for a +20Mtpa export thermal coal business
• Potential for the development of two coal-fired power stations
• Shallow underground thermal coal deposits Stable operating environment
• Botswana seen as a stable economy with a Government highly supportive of foreign investment
• Robust legislation governing mining operations
• Low corporate taxes and no exchange controls
• Relatively untapped coal resources lends itself to further exploration Strategic opportunities due to regional energy deficit
• Development of coal-fired power stations for sale of electricity to Botswana, South Africa and Southern African Power Pool
• Potential sale of coal to Botswana Power Corporation (BPC) and planned IPPs International demand for coal set to increase over the next few years
• Export-quality coal identified at Western Mmamabula West and Western Mmamabula East prospecting licence areas, comparable to coal exported from South Africa
• Development of infrastructure facilitating exports
• The process for development of infrastructure to facilitate exports has commenced with the Botswana and Namibian Governments requesting expressions of interest for the development of the Trans-Kalahari Railway and associated port infrastructure in Namibia. The closing date was 16 November 2010. There were 35 bids that were received.
• MoUs for the Techobanine Project, a new proposed rail link through Zimbabwe to Mozambique enabling access to export facilities at proposed Mozambique ports, have already been signed by the Botswana, Zimbabwe and Mozambique Governments, with first rail operation expected to commence in 2015
• Opportunities for the sale of coal within Africa to supply local industry (cheaper than current supply from South Africa)