Mmegi

Suitors court Shumba

Local energy developer, Shumba Energy says it has received direct approaches from external investors interested in talks over the company’s extensive coal resources located in eastern Botswana. While Shumba’s leases are estimated to hold about 4.5 billion tonnes of coal, the company in recent years has shifted its priorities to developing renewable energy initiatives, including a 100MW solar plant near Tati. This week, Shumba directors said there had been “a clear reverse in global sentiment with regard to the requirement for and development of hydrocarbon assets for base load power generation within the growing energy crisis”. The statement refers to the energy crisis that has developed in Europe and parts of Asia as part of the fallout from Russia’s invasion of Ukraine.

The crisis has seen demand for coal peak, with rising prices, as countries that had previously shunned the mineral are forced back to it due to disruptions in alternative supply. Shumba directors said the shift had justified the company’s belief and the decision taken by the board that it should maintain its strong hydrocarbon asset portfolio and make its development ready “for the inevitable change that would come”. Directors said the company was currently engaging with external investors initiated by the energy crisis challenges being faced both within the SADC region and internationally and was hopeful of delivering positive news in this regard in due course.

Business

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2022-09-30T07:00:00.0000000Z

2022-09-30T07:00:00.0000000Z

https://enews.mmegi.bw/article/281895892121901

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