Botala Energy has obtained mining licence ML0052/2025 for its Serowe CBM project in Botswana, enabling development and commercial production. This licence follows various regulatory approvals and allows production for ten years, with a possible extension of 25 years. The Botswana Government may acquire a 15% equity stake in the project, while Botala ramps up development activities to meet rising energy demands in Southern Africa.
Botala Energy, an Australian gas exploration and production company, has successfully obtained mining licence ML0052/2025 for its Serowe coal bed methane (CBM) project in Botswana. This licence, awarded under Section 39 of Botswana’s Mines and Minerals Act, grants the company crucial regulatory approval required for the development and commercial production of the project.
The acquisition of this licence follows the completion of essential environmental and planning approvals, as well as feasibility studies, ensuring adherence to all major regulatory stipulations. This licence allows Botala to produce CBM natural gas in the designated area for ten years, with a possibility of extension for an additional 25 years.
The newly granted licence encompasses a significant portion of the area previously covered by Prospecting Licences PL356/2018 and PL400/2018. The Botswana Government has a 90-day period to decide whether to exercise its option for a 15% equity stake in the project, which is specified in Section 40 of the Mines and Minerals Act. If pursued, Botala is projected to receive around A$2.2 million (approximately $1.3 million).
Additionally, the Government of Botswana is entitled to receive a royalty of 3% of the gross market value calculated at the mine gate based on arm’s length sales. Kris Martinick, CEO of Botala Energy, remarked that the issuance of the mining licence represents a pivotal moment for the company, eliminating the last regulatory barrier and permitting the shift from exploration to development, moving closer to generating revenue.
Kris Martinick emphasized, “With all environmental and planning approvals secured, our fieldwork advancing and the bankable feasibility study progressing, we have strengthened our position to deliver a commercially viable gas project.” In light of these advancements and the increasing energy needs in Southern Africa, Botala is committed to enhancing development efforts, including drilling additional wells, upgrading infrastructure, and finalizing its bankable feasibility study (BFS).
In summary, Botala Energy has received the mining licence for its Serowe CBM project, representing a crucial step towards commercial production. With regulatory approvals attained, the company is poised to accelerate development processes. The engagement of the Botswana Government in potentially acquiring equity and the measures taken toward meeting the increasing energy demands position Botala favorably in the evolving energy landscape.
Original Source: www.offshore-technology.com
