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Tlou Energy attains mining licence for Lesedi CBM project

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World Coal,

A mining licence for Tlou Energy’s Lesedi coalbed methane (CBM) project has been granted by Botswana's Department of Mines in the Ministry of Mineral Resources, Green Technology and Energy Security (the Ministry).

Tlou's Managing Director Tony Gilby said: "The Mining Licence for the Lesedi CBM project was the first application of its kind to be lodged in Botswana.  The awarding of the mining licence by the Ministry 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.  The issue of a mining licence will pioneer the development of a new and exciting natural CBM gas industry in Botswana, an industry that will lead to a new indigenous source of energy, income and employment for the country.  I would like to thank the team at Tlou and our consultants for putting together such a comprehensive application and the Ministry for the positive assessment of the application. Having been granted a Mining Licence will also further enhance our proposal for the Botswana Government sanctioned CBM fuelled pilot power project which is due to be submitted later in the week".

In Botswana, holders of Prospecting Licences (PL) are issued mining licences once exploration on a relevant prospecting licence has been concluded and the holder of the prospecting licence is ready to commence commercial production.

Mining licences are assessed in accordance with the prescribed statutory requirements of the Botswana Mines and Minerals Act.  Two major components of a mining licence application are an approved EIA (granted for the Lesedi Project in September 2016) and a feasibility study for the relevant project. Tlou has received notification from the Ministry that it has been granted a licence over the area applied for.

The company will make a further announcement containing material terms of the licence, once it has received the license itself, which it expects to do by the end of this week.

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