Botswana has granted a mining licence to Tlou Energy for its Lesedi coal-bed methane (CBM) project which paves way for developing the first gas-fired power project in the African country.
Tlou’s mining license covers an area of nearly 900km, which was designated as prospecting licence PL002/2004 in the past. The mining licence provides security of tenure over the project area, stated the Australia-based company which is focused on providing power in Botswana and southern Africa with the development of the CBM project.
The mining license given by Botswana’s Department of Mines in the Ministry of Mineral Resources, Green Technology and Energy Security also advances Tlou's activities ranging from exploration of CBM and appraisal to development of the project.
Through the granting of the mining license, Tlou says that it can improve its proposal further for the CBM fuelled pilot power project which had been sanctioned by the Botswana government and is due to be submitted this week.
Tlou managing director Tony Gilby said: “The Mining Licence for the Lesedi CBM Project was the first application of its kind to be lodged in Botswana.
“The awarding of the Mining Licence by the Ministry is a major milestone for the Company, further de-risks the project, and is an important prerequisite to developing the first commercial gas-to-power project in the country.”
Gilby concluded that the mining licence will trigger the development of a new natural CBM gas industry in the country which in turn will create a new indigenous energy source, income and employment in Botswana.
Tlou stated that the Botswana government had requested it for a proposal to provide up to 100MW of power from its Lesedi CBM project.