Bots power plant draws investor interest

JOHANNESBURG – Top international energy and mining companies are interested in investing in a US$4 billion power plant in Botswana, Toronto-based Coal Investment said yesterday.

Chief Executive Gregory Kinross said Coal Investment, which aims to raise US$40 million by listing in Toronto and Botswana in March, expected the Mmamabula coal mine and a 2 400-3 600 megawatt power plant to launch in 2011. “There has been tremendous interest (from international investors),” Kinross told Reuters.”We have had specific approaches by one or two major international power companies and more serious discussions with one party.”Coal Investment, which is backed by South African investment firm Tau Capital, owns 51 per cent of a joint venture with Botswana-based Meepong Coal Investment to develop the Mmamabula coal mine.Kinross said a news report that France’s Suez and London-listed International Power might be interested in investing was not “off the mark” but that the most serious talks regarding the US$4 billion plant were with another company.The Botswana government said in October the coal mine and plant would produce enough power to supply the whole of southern Africa with power and help avert shortages that are expected to hit the region around 2011.South African power utility Eskom is keen to buy the power and is in “close discussions” with Coal Investments and the Botswana and South African governments were due to sign a memorandum of understanding over the purchase of power in coming weeks, Kinross said.Coal Investment had drafted in prominent South African businessmen like Nedbank Chairman Reuel Khoza and Development Bank of Southern Africa Chief Executive Mandla Gantsho as directors to help attract major funds to its share offering, Kinross said.Several mining companies had also approached Coal Investment about investing in the mine, although Kinross said the company would probably wait until further feasibility studies were completed before bringing one of them on board.The company would probably split the project and recruit both an international power and a mining company to spearhead development.No one at Suez or International Power was immediately available to comment.-Nampa-Reuters”There has been tremendous interest (from international investors),” Kinross told Reuters.”We have had specific approaches by one or two major international power companies and more serious discussions with one party.”Coal Investment, which is backed by South African investment firm Tau Capital, owns 51 per cent of a joint venture with Botswana-based Meepong Coal Investment to develop the Mmamabula coal mine.Kinross said a news report that France’s Suez and London-listed International Power might be interested in investing was not “off the mark” but that the most serious talks regarding the US$4 billion plant were with another company.The Botswana government said in October the coal mine and plant would produce enough power to supply the whole of southern Africa with power and help avert shortages that are expected to hit the region around 2011.South African power utility Eskom is keen to buy the power and is in “close discussions” with Coal Investments and the Botswana and South African governments were due to sign a memorandum of understanding over the purchase of power in coming weeks, Kinross said.Coal Investment had drafted in prominent South African businessmen like Nedbank Chairman Reuel Khoza and Development Bank of Southern Africa Chief Executive Mandla Gantsho as directors to help attract major funds to its share offering, Kinross said.Several mining companies had also approached Coal Investment about investing in the mine, although Kinross said the company would probably wait until further feasibility studies were completed before bringing one of them on board.The company would probably split the project and recruit both an international power and a mining company to spearhead development.No one at Suez or International Power was immediately available to comment.-Nampa-Reuters