Sales Strategy

OUR CORE PURPOSE

To extract coal from the vast Resource demarcated in and around the Masama Coal Mine whilst ensuring profitability, diversifying foreign income and royalty streams for Botswana, creating employment, transferring skills and doing this in an ethical and responsible manner.

WHAT SETS US APART

Masama’s high quality and consistent supply to customers in the regional industrial coal market, with resources available to become involved in the power generation and seaborne export markets should the opportunity arise. We offer superior qualities such as low ash and sulphur.

WHAT WE DO

SALE OF COAL TO THE INDUSTRIAL MARKET
Minergy’s coal marketing effort concentrates on targeting industrial customers with specific coal needs. Typical demand for the correct size, quality and a consistent supply remains high.

Minergy’s target market is depicted in the presented graphs indicating that in South Africa the industrial market, according to the SA Coal Report 2020, comprises 33MT and this industrial component is broken down into domestic traders, industrial, steelworks, chemical, cement, brick and other — which is the Minergy target market. The size of this market remains 18% of the total domestic coal demand for industrial, synthetic fuel and power generation.

Minergy’s focus is ensuring that industrial customers across southern Africa receive this steady volume and high quality of coal.

WHAT THE FUTURE HOLDS

POWER GENERATION MARKET

According to The Integrated Resource Plan (2019), by 2030, almost 60% of electricity in South Africa will still be generated from coal.

This will have reduced from the current level of 77%. Given that no new power stations are being built and that South Africa continues to face a very real coal-cliff, Minergy remains poised and capable of supplying coal to the southern African power generation market.

Minergy is the only Botswana coal mine to tender and be shortlisted for supply to the Tutuka Power Station in South Africa (100 million tonnes of coal/20-year tender).

Minergy is also assessing its participation in the request by the Government of Botswana to provide a 300MW power station for which the company has been shortlisted.

EXPORT OF COAL

Once the Mmamabula-Lephalale export line to South Africa has been built, which will take roughly 550km out of the logistics loop, Minergy will be very well placed to rail coal to export markets, benefiting from this significant distance advantage.