Botala Energy Secures Mining Licence for Serowe CBM Project in Botswana

Botala Energy has secured a mining licence for its Serowe CBM project in Botswana, allowing for commercial production. Following environmental approvals, the licence grants a ten-year production right, renewable for 25 years. The Government of Botswana may acquire a 15% equity stake, and Botala plans to enhance development efforts in response to rising energy demand.

Botala Energy, an Australian gas exploration and production company, has obtained a mining licence (ML0052/2025) for its Serowe coal bed methane (CBM) project in Botswana. This licence was issued under Section 39 of the Mines and Minerals Act, granting the necessary regulatory approval for both project development and commercial production.

The recent licence acquisition follows successful environmental and planning approvals as well as feasibility assessments, ensuring adherence to regulatory standards. It allows Botala to produce natural gas from CBM within the licensed area for a duration of ten years, with an option to renew for an additional 25 years.

The designated licence area primarily encompasses regions formerly covered by Prospecting Licences PL356/2018 and PL400/2018. Following this, the Botswana Government has a 90-day period to decide whether to exercise its option to acquire a 15% equity stake in the project, as stipulated in Section 40 of the Mines and Minerals Act. If accepted, Botala is projected to receive approximately A$2.2 million (equivalent to $1.3 million).

Additionally, the Government of Botswana is entitled to a royalty fee of 3% of the gross market value of the gas, calculated at the mine gate based on an arm’s length sale. Botala Energy’s CEO, Kris Martinick, expressed the significance of this milestone, stating it is a pivotal moment for Botala and reduces risks associated with the Serowe CBM Project.

With all required approvals in place and fieldwork progressing, Botala Energy is intensifying its development efforts by drilling additional wells, improving infrastructure, and completing its bankable feasibility study (BFS). These advancements align with the increasing energy demand in southern Africa, indicating a positive trajectory for the company.

In conclusion, Botala Energy’s acquisition of the mining licence marks a significant advancement for the company’s Serowe coal bed methane project. With regulatory hurdles cleared and a robust development strategy outlined, Botala is well-positioned to embark on commercial production while addressing the growing energy needs in the region.

Original Source: www.offshore-technology.com