JOHANNESBURG (miningweekly.com) – Aim- and ASX-listed Tlou Energy has been granted a mining licence for its Lesedi coalbed methane (CBM) gas project, in Botswana.
“The mining licence for the Lesedi CBM project was the first application of its kind to be lodged in Botswana. The awarding of the licence by the Ministry [of Mineral Resources, Green Technology and Energy Security] is a major milestone for the company, further de-risks the project and is an important prerequisite to developing the first commercial gas-to-power project in the country,” MD Tony Gilby said in a statement on Monday.
Earlier this year, the company received a detailed request for proposal from the Ministry for the development of up to 100 MW of CBM-fuelled pilot power plants in the country.
The company is planning to lodge its proposal to the Ministry this week prior to the August 23 closing date.
The planned submission outlines a scalable CBM gas-to-power project.
A scalable approach, with power connected to the grid in phases, will enable Tlou to sell power into the grid sooner, thereby generating earlier revenue for the company and allowing for the staging of capital expenditure.
The Ministry, meanwhile, has also extended licences for the company’s Mamba project, which comprises five CBM prospecting licences in Botswana covering an area of approximately 4 500 km2.
The licences have been extended for three months while the Ministry completes its review of Tlou's licence renewal application.