Gov’t acquires stake in Serowe CBM project
Minerals Development Mining Company (MDCB), the government’s mining investment arm has confirmed intentions to acquire a 15 percent equity interest in the Serowe CBM project. The development is in line with option under Section 40 of the Mines and Minerals Act, allowing government to claim a stake in mining venture. Botala, the developers of Serowe CBM project plans to develop liquefied natural gas (LNG).
According to a statement issued by Botala this week, government’s decision to invest in the project follows a comprehensive economic and technical review by the agency which demonstrated the project’s commercial viability. “Completion of the transaction is subject to execution of detailed operating agreements expected in November or December 2025, and approval by the MDCB Board and shareholder,” said a statement issued on the bourse. Botala Energy Chief Executive Officer, Kris Martinick said government’s planned participation reflects confidence in the project’s potential and alignment towards national energy security objectives.
“This investment will support our immediate work programme and provide a foundation for the next stage of project development.” Matrinick said Botala is currently advancing a bankable feasibility study (BFS), to develop a modular LNG production facility to commercialise gas from its Serowe CBM Project. Detailed engineering, financial modelling, and commercial delivery planning is being completed for a four-phase plan to reach a production benchmark of 3.5 petajoules (PJ) served by 108 wells. The first phase of development at the Serowe CBM Project involves establishing Pilot Pitse, a five-well “proof of concept” station designed to test commercial deliverability. All five wells have been drilled with flow outcomes modelled under low (40 gigajoules (GJ), medium (80GJ), and high (100GJ) scenarios.
The MDCB investment will support ongoing flow testing and data collection at Project Pitse, expansion drilling of additional wells as well as the ongoing progression of BFS work programs. Meanwhile, Botala continues engagement with additional potential investors into the Serowe CBM Project. “Additional funding initiatives would complement the MDCB’s participation and underpin the capital requirements for continuous drilling, well tie-ins, and LNG infrastructure development.” The MDCB deal represents Botala’s second significant commercial milestone this year, following a binding Letter of Intent signed in March 2025 with Scaw South Africa Proprietary Limited, granting the Johannesburg-based industrial major exclusive right to purchase up to 3.5 PJ per year of LNG with an option to increase to 4.7 PJ/year as production scales. The initial term of the agreement is 10 years with an option to extend up to 20 years.