Shumba, CoPet establish joint venture

29th August 2019 By: Simone Liedtke - Writer

Energy development company Shumba Energy has concluded a joint venture (JV) partnership, which has resulted in it holding an 80% interest in energy company Coal Petroleum (CoPet).

Based in Botswana, CoPet is developing a commercial-scale liquid fuels production facility, called Project Tsosoloso, to provide Africa with energy fuels and specialty chemicals for value-added product production.

CoPet has also partnered with engineering, procurement and construction companies Powerchina International and the Wison Group for the execution of the bankable feasibility study (BFS) for the project.

The technical aspects of the BFS are being completed.

Following the formation of the JV, Shumba will continue to engage with Powerchina International and Wison on technical and project development issues, as well as on funding matters, including potential equity and project financing options.

Further, Shumba has entered into a binding coal supply agreement with CoPet to guarantee the supply of all the feedstock that would be required for the life of the project from the Mabesekwa coal resource and project, which is situated about 60 km 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 coal-to-liquids facility at the Mabesekwa site and will become a managed subsidiary of Shumba.