Botala Energy has secured a mining licence for its Serowe CBM project in Botswana, allowing for a ten-year term with a possible 25-year renewal. This milestone follows environmental approvals and feasibility assessments. The Botswana Government can opt for a 15% equity stake in the project. CEO Kris Martinick highlights this as a significant step towards advancing the project and addressing energy demand in the region.
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 is granted under Section 39 of the Mines and Minerals Act and allows for project development and commercial production.
The mining licence was issued following successful environmental and planning approvals, as well as feasibility assessments, confirming adherence to essential regulatory standards. The licence permits Botala to produce CBM natural gas within the approved area for ten years, with the option to renew for an additional 25 years.
The newly granted licence covers much of the area previously held under Prospecting Licences PL356/2018 and PL400/2018. Furthermore, the Government of Botswana has a 90-day period to decide on acquiring a 15% equity stake in the project, as stipulated in Section 40 of the Mines and Minerals Act. If exercised, Botala anticipates receiving approximately A$2.2 million (USD 1.3 million).
According to the agreement, the Government of Botswana will receive a 3% royalty of the gross market value, calculated based on an arm’s length sale at the mine gate. Botala Energy CEO Kris Martinick remarked that obtaining the mining licence marks a critical advancement for the company and mitigates significant risks associated with the Serowe CBM Project.
The company is also enhancing its development activities, including drilling additional wells, improving infrastructure, and completing its bankable feasibility study (BFS), all aligned with the increasing energy demand in Southern Africa. This progress is paving the way for Botala to transition from exploration to development and move closer to generating revenue.
In conclusion, Botala Energy has successfully acquired a mining licence for its Serowe coal bed methane project, establishing a regulatory framework for its development. This milestone, along with the potential government equity stake and royalties, positions Botala favorably in the context of Southern Africa’s growing energy needs. The company’s strategic development efforts are key to advancing the project towards commercial viability and revenue generation.
Original Source: www.offshore-technology.com
