Tlou Energy obtains mining licence for CBM project in Botswana
Coal bed methane (CBM) natural gas company Tlou Energy has secured a mining licence for the Lesedi CBM project from Botswana's Department of Mines in the Ministry of Mineral Resources, Green Technology and Energy Security.
The licence has been issued under Section 41 of the Mines and Minerals Act of Botswana and allows Tlou Energy to produce CBM natural gas in the approved licence area for a period of 25 years through to August 2042.
Spread over 900km², the licence area was previously referred to as prospecting licence PL002/2004.
The company noted that project development is expected in the near future and is not contingent on a minimum expenditure requirement.
The project flared its first gas in 2014 and entails a payment of royalties to the Government of Botswana at a rate of 3% of gross market value, in addition to a licence fee of around $9,000 per annum payable to the office of the Director of Mines.
According to the company, the country faces energy shortage and as a result, businesses are currently importing power and diesel to power their operations.
In addition to a mining licence, Tlou Energy holds nine prospecting licences spread over a total area of around 8,300km².
The Lesedi project contains contingent gas resources of about 3.2 trillion cubic feet (3C).
Tlou Energy intends to undertake an initial scalable gas-to-power project in Botswana.