12 March 2025
Botala Energy, an Australian gas exploration and production company, has achieved a significant milestone by obtaining a mining licence (ML0052/2025) for its Serowe coal bed methane (CBM) project in Botswana.
This licence, granted under Section 39 of the Mines and Minerals Act of Botswana, provides the necessary regulatory approval for project development and commercial production. The licence follows the successful completion of environmental and planning approvals, alongside feasibility assessments, ensuring compliance with all key regulatory requirements.
It grants Botala the right to produce CBM natural gas within the approved licence area for a period of 10 years, with an option to renew for a further 25 years.
The licence area incorporates most of the region previously designated under Prospecting Licences PL356/2018 and PL400/2018.
The Botswana government now has a 90-day window to determine whether to exercise its option to acquire a 15 per cent equity stake in the project, as outlined in Section 40 of the Mines and Minerals Act. Should this option be exercised, Botala is expected to receive approximately $2.2 million. Additionally, the Government of Botswana is entitled to a royalty of 3% of the gross market value, calculated at the mine gate based on an arm’s length sale.
Botala Energy CEO Kris Martinick emphasised the importance of this development, stating:
“The granting of the mining licence is a defining moment for Botala and a major de-risking milestone for the Serowe CBM Project.
“It removes the final regulatory hurdle and provides us with the green light to transition from exploration to development, bringing us closer to first revenue.”
With all environmental and planning approvals secured, fieldwork advancing, and the bankable feasibility study progressing, Botala has strengthened its position to deliver a commercially viable gas project.
These developments coincide with the growing energy demand in southern Africa, and the company looks forward to accelerating its development efforts to bring much-needed natural gas to the region.
Having secured the regulatory framework, Botala is ramping up development activities such as drilling extra wells, enhancing infrastructure, and completing its bankable feasibility study (BFS). The company aims to meet the increasing energy demand in Southern Africa, with the Serowe project estimated to hold 6.08 trillion cubic feet of prospective gas resource.
This milestone marks a significant step forward for Botala Energy and the Serowe CBM project, potentially positioning the company as a key player in meeting the region’s growing energy needs.
Source: https://rb.gy/0xvl7o
