African Energy confident on Sese

African Energy, the Australian Stock Exchange (ASX) listed miner is confident that negotiations with an unnamed power off-taker for Sese power project will bear fruit. The negotiations, which are currently ongoing, will pave way for the construction of 300-mw power station next year, said project manager David Scott. More specific details on negotiations are expected at the end of the 1st quarter.

“We are pleased with the current status of the negotiations,” said Scott, who is currently based in Botswana. The dual company, which is also listed at Botswana Stock Exchange (BSE), has refused to reveal the name of the off-taker they are negotiating with, citing confidentiality in the process. Chief Executive of state-owned Botswana Power Corporation’s (BPC), Jacob Raleru said they have not signed any agreement with the Perth based company.

BPC’s latest renewal of contract with Eskom has come close to confirm that they have not signed any deal with African Energy. Sese Integrated Power Project will comprise a power station, a coal mine and all related infrastructure required to deliver electricity into the Southern African Power Pool (SAPP), said company secretary Daniel Davids in the company’s quarterly update to December 2012.

On Tuesday, African Energy notified shareholders that an application for an archaeological permit for a coalmine and power station at the Sese Integrated Power Project in Botswana has been approved with ‘standard conditions’ by the National Museum department, following submission of an Archaeological Impact Assessment (AIA) in November 2012. African Energy is yet to announce how it will fund the integrated project, which is expected to cost millions of Pula.

No Independent Power Producer (IPP) has ever produced and supplied power to the local or regional market, ever since government allowed private players into the power producing industry to feed into the national grid in 2007. Previously, CIC Energy- an exploration company which has since been acquired by Jindal Africa announced an ambitious 2400 mw power station that has since been halted.