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Shumba Energy enters into liquid fuels partnership

Shumba Energy Ltd has notified its shareholders and the public that it has concluded a joint venture partnership which has led to it holding 80% of the equity in Coal Petroleum Ltd (“CoPet”).


CoPet is a private Botswana company that has been focused on the development of a commercial scale liquid fuels production facility, called ‘Project Tsosoloso’ and providing Botswana first and then Africa with energy fuels and specialty chemicals for value added product production.

CoPet has partnered with Powerchina International Group Limited (PowerChina International) and Wison Group (Wison), both leading Chinese EPC companies with a proven track record and recent experience in the coal-based power & CTL technologies for the execution of the Bankable Feasibility Study (BFS).

They are in the process of completing the technical aspects of the BFS to a detailed and accurate capital and operating cost estimation required to secure the project execution funding. Shumba is continuing to engage with its partners Powerchina International and Wison on technical and project development issues, also on funding matters, including potential equity and project financing options. Backgrounds to both Powerchina International and Wison can be found further in the announcement.


Further, Shumba has entered into a binding Coal Supply Agreement with CoPet to guarantee supply of all the feedstock that would be required for the life of the Project from the Mabesekwa coal resource and project situated approximately 60km south-west of Francistown. CoPet is working with Shumba’s specialists for the integration of the Mabesekwa site geotechnical, regulatory permitting and environmental impact assessment activities. CoPet now plans to build the proposed CTL facility at the Mabesekwa site and CoPet will now become a managed subsidiary of Shumba.


Project Status

The baseline technical and economic assessment of the envisaged commercial scale coal to liquids (CTL) plant facility and the technical direction and development of the Project within CoPet has been completed by Holland and Hausberger (HH), a 10% shareholder in CoPet.  HH are a highly qualified and experienced project development and consulting engineering company in the petrochemical and natural resources conversion process space and have been involved with the project since conceptualization and also completed the pre-feasibility study (PFS) issued in 2014.

Through Powerchina International and Wison the BFS is underway following which the Project will initiate the Front-End Engineering Design (“FEED”) and then it is envisaged will execute the balance of the project under a Lump Sum Turnkey project basis to commercial production.
 
Powerchina International

POWERCHINA International Group Limited (POWERCHINA International) is the world’s largest hydropower, electricity and infrastructure construction group with the strongest comprehensive strength and strongest brand impression among the industry—It is the overseas business headquarter of the Power Construction Corporation of China (POWERCHINA) and core enterprise.

With the development of its electric power business taking priority, Powerchina International employs a twofold strategy for project contracting and investment & development, and gives priority to the development of four business segments: hydropower and water affairs, thermal power and power grid, traffic engineering, and new energy. At of the end of 2017, PowerChina International has set up 322 overseas offices in 109 countries. The total contract value of projects under construction exceeds $100 billion.

Wison

Wison Group is a diversified group focusing on energy chemical services with three core businesses consisting of Engineering Services, Offshore & Marine Engineering and New Chemical Material. The Group has established presence in Southeast Asia, South Asia, the Middle East, Africa, North America, South America, Europe and other regions. Its remit of business covers the storage and utilization of primary energy including coal, oil and natural gas, onshore energy engineering services, marine engineering equipment fabrication and downstream new chemical materials development.

As China's leading technical solution provider in energy sector, it is specialized in technologies and engineering construction services including petrochemical, refinery, C1 chemical, central processing facility and LNG & power generation. With multiple commercialized proprietary intellectual property rights, the company can provide solutions to its customers covering the entire project life cycle.

Shumba

Shumba is a coal mining and energy development company based in Botswana and listed on the Botswana Stock Exchange. Shumba has over the last couple years progressed from an exploration company to an energy development company and sits on over 4.5 billion tonnes of thermal coal.

As a major industry player, Shumba’s mission is to satisfy the growing energy demand in the SADC region as a result of chronic power shortages. For Shumba “Powering the Future” means addressing chronic power shortages head-on and supplying energy to affected southern African countries in a sustainable and cost-effective manner. Established in 2011, Shumba now owns a significant portion of advanced energy projects in Botswana and is uniquely positioned with its strategy to develop energy projects that are unaffected by the volatility of global commodity prices.

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China’s GDP expands 3% in 2022 despite various pressures

2nd February 2023
China’s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.

The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.

In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.

Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.

China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.

Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.

On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.

According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.

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Jewellery manufacturing plant to create over 100 jobs

30th January 2023

The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.

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Investors inject capital into Tsodilo Resources Company

25th January 2023

Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.

According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.

The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.

Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.

Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.

Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana.  The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.

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