Morupule Coal Mine expects its revenues to reach P1 billion next year, as its new 1.4 million tonnes per annum expansion, Motheo, cashes in on the surging global demand for the mineral.

President Mokgweetsi Masisi officially launched the P1.7 billion Motheo open cast mine on Wednesday, which will add to Morupule Coal’s current production of 2.8 million tonnes per annum.

The war in Ukraine has sparked an energy crisis from Europe to Asia, lifting demand and prices for coal and reversing years of disfavour the commodity has endured as a result of the global transition to greener energy sources.

Masisi said a review of the coal market suggests that the customers requiring coal, mostly in the European and Asian countries, are prepared to pay a premium for higher grades supply of coal anywhere.

According to the President, this demand equates to between 50,000 and 100,000 tonnes of coal per month, or 10 and 15 million tonnes of coal per annum required to service those markets.

“As we continue to seek alternative engines for our economic growth, we are also very keen on exploring how best we can expand our revenue base to other minerals like coal which we have in abundant quantities,” he said.

“A quick observation of the current regional and global energy trends indicates that there is a noticeable steady demand for coal.”

Morupule Coal, he said, would be further ramping up its production to 7.6 million by 2027, while revenues would increase from P1 billion in 2023 to P3 billion by 2027.

Masisi said despite the expansion in coal production, Botswana remained committed to its own green energy transition and the carbon emissions reduction targets it has made at the international level.

“I am also aware of the sensitivities surrounding coal mining and the utilisation of natural resources, particularly from the point of view of environmental sustainability and the green future,” he said.

“Botswana will ensure that the activities surrounding our coal mining efforts will adhere to the international commitments for climate change.

“Our commitment in this regard remains very strong.

“We want to promote responsible exploitation of our natural resources for sustainable development while at the same time taking extraordinary measures to make best of the value of our coal resources to enable economic diversification in Botswana.”

Botswana plans to generate more than 30% of its demand from renewable sources by 2030, while government’s Integrated Resource Plan (IRP) which covers 20 years, only features one coal-fired power station.

Under the IRP, procurement is being fast-tracked for 135MW of solar photovoltaic plants, with another 200MW concentrated solar plant due to be awarded this year.