London, 16 January 2018 – Botswana-based emerging coal mining company, Minergy Limited, has announced today its intention to list on the UK’s Alternative Investment Market (AIM) in the latter part of this year.
Minergy owns 100% of the 390Mt (million tonne) Masama Coal Project in the Mmambula Coalfield, in south west Botswana, 50km north of Gaborone. An opencast, low strip ratio mine is currently in the planning phase, with the potential to produce 2.4 Mtpa (metric tonnes per annum) of coal within a year after opening. The company will focus on delivering high quality coal to the regional market, including Botswana and South Africa, and entering the international seaborne thermal coal export market.
In April 2017, Minergy listed on the Botswana Stock Exchange (BSE), and has raised BWP 100 million (£7.5 million) through private placements. To date it is the first and only coal mining company listed on the Main Board of the BSE and will be only the second operating coal mine in Botswana after the government owned Moropule colliery.
The management team at Minergy has significant mine development and operational experience with a wide range of expertise in coal mining, marketing, sales and distribution and energy markets across Africa and internationally. The executive management team includes CEO Andre Boje and CFO Morné du Plessis, supported by a Senior Mining Engineer. An operational team is in place with expertise in geology, mechanical engineering, in-depth knowledge of the Department of Mines and various other important stakeholders, coal mining safety, health, environment and quality regulatory compliance and management, risk management, human resource and personal management and staff optimisation. These executive and operational teams are supported by a board of directors, the Independent Chairman of which is Mokwena Morulane.
Andre Boje has more than two decades of experience in the South African coal industry, having previously founded Chandler Coal Pty Ltd in 1997, a company which was listed on the Johannesburg Stock Exchange (JSE) as Wescoal Holdings Ltd (Wescoal) in 2005. During his ten-year period as CEO, Andre developed Wescoal from a small coal marketing company into a full-scale junior coal miner through various acquisitions and the opening of a number of new coal mines, resulting in a significant increase in shareholder value with a dividend paying company.
Boje commented: “I am delighted to announce our intention to list on AIM later this year. AIM is the natural home for an ambitious company looking to raise long-term equity finance to fund future growth. Listing on AIM will enable us to reach our full potential with the Masama Coal Project, alongside our commitment to the development of the coal mining, marketing and distribution industry in Botswana.”
Minergy expects that following the approval of the mining license, it will commence the opening of the box cut in July 2018, with the first saleable coal from Masama available in Q4 2018.
Boje concluded: “An investment in Minergy offers shareholders an opportunity to invest in an anticipated cash generative coal mining operation which presents a platform for further growth and creation of shareholder value. Assessments of the Masama Coal Project completed so far indicate that it is a vast resource with low strip ratios ideally located close to demand markets in South Africa and Botswana.”
Minergy is in the process of appointing skilled and highly experienced brokers, lawyers and accountants.