African Energy owns 100% of the Sese Coal and Power Project in northerm Botswana which has a defined near-surface coal deposit containing indicated resources in excess of 2.5 billion tonnes. The entire resource is amenable to low-cost open pit mining and can produce large tonnages of both domestic power station fuel amd washed coal for regional and export sales. The Company is currently undertaking a bankable feasibility and environmental impact study for an initial 2 million tonne per annum mine, and has commenced marketing and sales negotiations with regional customers. Discussions with several off-takers for 300-600MW of new electricity generation capacity have also commenced. The Company intends to develop Sese through a series of stages aligned to markets and infrastructure, commencing with Stage 1(2 million tonnes per annum) in 2013, expanding to Stage 2 (5 million tonnes) in late 2015. Further expansions will be possible through improvements to existing rail and port facilities.
