www.africanenergyresources.com
African Energy (ASX:AFR) owns 100% of the Sese Coal and Power Project in northerm Botswana which has a defined near-surface coal deposit containing indicated resources in excess of 2.5 billion tonnes. The entire resource is amenable to low-cost open pit mining and can produce large tonnages of both domestic power station fuel amd washed coal for regional and export sales.
African Energy Resources managing director ups indirect stake in company
African Energy Resources (ASX: AFR) managing director Dr Frazer Tabeart has increased his indirect shareholding in the company.
Tabeart bought 100,000 shares on-market through Revenge Holdings for a consideration of $31,341, providing an average entry price of $0.313.
African Energy Resources has begun bulk sampling work at its 2.7 billion tonne Sese Coal Project in Botswana following a Concept Study in September that confirmed the project's viability.
Robust cash flows and strong operating margins are possible under a variety of scenarios that do not require new rail and port infrastructure.
The study concluded that the project could be developed through a staged approach. An initial, up to 1 million tonnes per annum operation (Stage 1) can generate cash flows from 2013 and involves selling washed coal into domestic and regional markets.
Additional coal sales to a power station, and moderate volumes of export sales could expand Sese into a 3‐5 million tonnes per annum (Stage 2) operation.
India is considered the likely market for Sese thermal coal, with demand set to increase from 50 million tonnes per annum in 2010 to 210 million tonnes per annum by 2025.
China is also experiencing a surge in demand for the resource with thermal coal imports expected to double to 213 million tonnes by 2025.
