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Australian junior miner, Discovery Metals Limited (DML), is awaiting the award of two key permits from government as it braces for the construction of a 25-megawatt coal-fired station to power the Boseto Copper Project.

 
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On Wednesday, managing director Brad Sampson told BusinessWeek other components of the multimillion-pula project were in place, including potential agreement with an engineering contractor.
Also in place are discussions for coal supply from local producers, with Sampson saying DML had held talks with "all the players we believe are potential suppliers".
While latest figures are unavailable, DML had previously estimated the coal-fired power station would cost about US$40 million (P300 million). "The engineering company is ready to go and (is) only waiting for us," he said in an interview from his Brisbane, Australia head office. "Before we give them that go-ahead, there are a few things outstanding. We are working on environmental permits for the project and we have also requested a licence from the Ministry of Minerals, Energy and Water Resources."
DML's plans are music to the ears of several coal developers in eastern Botswana whose projects have been hamstrung for two years following the withdrawal of South Africa as the targeted market for coal-fired power from the projects. Besides the operational Morupule Colliery, CIC Energy's Mmamabula project and Aviva Corp's Mmamantswe project are technically well advanced to deliver thermal grade coal. While Boseto's power station will require far lower quantities of coal than the three players are capable of delivering, it still represents the first avenue for unlocking the value of domestic coal. The development of Botswana's estimated 212 billion tonnes of coal has been limited by the lack of rail and seaport access, which are essential for exports to key markets such as India and China.
Sampson said while Botswana Power Corporation (BPC) and government were moving towards enhancing transmission in the Ngamiland District, Boseto needed to shift from diesel to coal for its electricity needs in the interim. "That project (government/BPC) is going to take a few years and we think the best approach for everyone is for us to build our station as quickly as we can and move from diesel from the Middle East to coal from Botswana," said Sampson. The MD said once the national grid was available to Boseto, the mine was likely to use the additional power to support its plans for expanding the project. The Boseto Copper Project will initially pump out 36, 000 tonnes of copper annually over a lifespan exceeding 15 years.
Expansion plans include extending life of mine to 25 years and boosting production to 50, 000 tonnes of copper per annum. Sampson said with the required permits in hand, DML was planning to start development of the power station before year-end.
It is expected the station will take two years to build, with DML's stated plans indicating commissioning of the project by mid-2013. "There are two aspects to the development, one of these being design and other being a construction programme," he said. "We would like to have front end design done and also start part of the two-year construction programme this year."
When it is commissioned later this year, the Boseto Copper Project will eclipse BCL Mine as the country's largest producer of copper. It will also produce approximately one million ounces of silver annually.