Botswana’s Shumba Energy has formed a joint venture with two Chinese companies to build a coal-to-liquids plant at a cost of between $1,5 billion and $2 billion, CEO Mashale Phumaphi said.
Botswana has abundant coal reserves of around 212 billion tonnes but currently imports all its fuel needs of 1,2 billion litres per annum.
Shumba has over the last few years progressed from being an exploration company to an energy development company.
It sits on over 4,5 billion tonnes of thermal coal reserves in Botswana’s eastern coal fields.
Shumba will hold an 80% stake in the joint venture, CoPet, with partners PowerChina International Group, part of state-owned Chinese firm
PowerChina, and Wison Group. –Reuters