Botala Energy has secured a mining licence for its Serowe CBM project in Botswana, granting approval for project development and commercial production. The licence allows for a ten-year extraction period with a renewal option. The Botswana Government may acquire a 15% equity stake, while a 3% royalty on gross market value is applicable. CEO Kris Martinick highlights the milestone as a transition from exploration to development, facilitating energy supply to southern Africa.
Botala Energy, an Australian gas exploration and production company, has attained a mining licence (ML0052/2025) for its Serowe coal bed methane (CBM) project in Botswana. This significant licence, granted under Section 39 of the Mines and Minerals Act, authorizes the company to proceed with project development and commercial production. It follows the completion of both environmental and planning approvals, as well as feasibility assessments, confirming compliance with essential regulatory standards.
The new licence permits Botala to extract CBM natural gas in the designated area for a period of ten years, with a renewal option for an additional 25 years. The licence encompasses most of the territory previously under Prospecting Licences PL356/2018 and PL400/2018. Additionally, the Botswana Government has a 90-day period to consider acquiring a 15% equity interest in the project as stipulated in Section 40 of the Mines and Minerals Act, potentially providing Botala with approximately A$2.2m ($1.3m) if exercised.
Under the terms of the agreement, the Government of Botswana is entitled to receive a royalty of 3% of the gross market value of the output, calculated at the mine gate based on fair market sales. Botala Energy’s CEO, Kris Martinick, emphasized the significance of the mining licence, stating it marks a pivotal moment for the company and mitigates risks associated with the Serowe CBM Project. He further noted that this milestone allows the firm to transition from exploration to development.
Kris Martinick expressed optimism regarding the project’s progress, including secured environmental and planning approvals, advancing fieldwork, and a progressing bankable feasibility study (BFS). He highlighted the urgency in meeting the increasing energy demands in southern Africa and conveyed Botala’s commitment to expedite development efforts to supply essential natural gas to the region.
In conclusion, Botala Energy’s acquisition of the mining licence for the Serowe CBM project signifies a crucial advancement in its operational journey. With all regulatory approvals in place, the company is positioned to enhance its developmental activities, contributing to the energy supply in southern Africa while potentially yielding significant economic benefits for both Botala and the Government of Botswana.
Original Source: www.offshore-technology.com
