Modern Mining December 2023

coal price

Coal production volumes increased every year since the company started production in 2019.

pricing made it difficult to compete. “Regional demand can now be met by two coal suppliers in Botswana,” he said. Although the size of operations at the Masama Coal Mine was reduced to balance production lev els and costs in the current market, Minergy strongly believed that the quality of its products, its loyal cus tomer base, and logistical advantages would set the tone for a solid future. Meanwhile, following a strategic positioning of the company earlier this year, Minergy’s main funder, the Minerals Development Company of Botswana, continued to play a prominent role in the company, having seconded Matthews Bagopi for 12 months to augment the management team. He fulfils the role of Acting Chief Executive Officer at Minery Coal, a subsidiary of Minergy. The CEO of the MDCB subse quently joined the Minergy Board of Directors. “The Botswana government has been the main funder of the Masama coal project and has been extremely supportive of our business, so it is a natural progression for them to get involved in the business to protect their investment.” Looking ahead Du Plessis explained that moving forward the com pany would need to dovetail demand for coal with supply output and possibly downsize the business to realise much needed cost savings.

“Further to this, the company will need to ink agreements with the new mining contractor and seek out further potential buyers for the product.” So, does the change in fortune affect how the project is viewed? According to Du Plessis, Minergy remains a suc cess story, as it started from ‘nothing’ to becoming a producing entity that sold 1.8 million tons of coal over a four-year period. “Coal production volumes have increased every year since we started production in 2019. We have proven to the market and the industry that Minergy is a viable operation. Even though coal export was initially not part of the business model, we have been able to export six vessels” He added that at peak mining, the project employed 566 people. Importantly, Minergy contin ues to upskill workers and employs 96% of staff from the local community. “The state’s support and investment into coal when financial institutions have shied away from investing in fossil fuels speaks to the project’s importance as a contributor to the local economy,” concludes Du Plessis. 

Minergy believes that the quality of its products, its loyal customer base, and logistical advantages will set the tone for a solid future.

December 2023  MODERN MINING  13