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Aviva Corporation Advances 1.3Bt Coal Mmamantswe Project After Lodging Of Environmental Report

Aviva Corporation (ASX: AVA, BSE: AVIVA) has lodged the final Environmental and Archaeological Impact Assessment Report for the Mmamantswe Project with the Botswana Department of Environmental Affairs.

The Environmental Impact Statement is expected to be issued by the end of August.

Mmamantswe is the only coal development project in Botswana with a JORC Reserve estimate, hosting an 895 million ton reserve, and containing some 200 million tons of export coal and 150 million tons of domestic coal.

The Mmamantswe deposit is located only 150 kilometres from planned Eskom power stations across the border and 70 kilometres from the railway serving those locations.

The project's location means it is in a prime position to capitalise on the future demand for power in the Southern African Power Pool.

It has a very low strip ratio, a defined 8 gigalitre per annum water resource, and is in close proximity to both transmission (under construction) for domestic and export power markets and to the proposed spur to the Trans Kalahari railway.

Studies have suggested that the Mmamantswe project, which is close to the South African border, could support a 10 million ton per year run-of-mine operation.

The Archaeological Clearance for the implementation of the project was issued by the Department of National Museum and Monuments in December 2011.

Botswana-based Earthtec Consultancy was commissioned to undertake a detailed Environmental and Archaeological Impact Study of the proposed Mmamantswe Coal and Power Project in August 2011.

Extensive public consultations were held in all the communities to be affected.

Coal Road Map Review

The Botswana Government's Coal Road Map Review is a necessary investment in export rail and domestic power infrastructure for coal sector development.

The positive outcome of the review includes preliminary Feasibility Studies into a preferred rail route, and a 400 kilovolt transmission line through the Mmamantswe licences to a new substation within 30 kilometres of the project.

The Mmamantswe licence is located at the take-off point for the Trans Kalahari Railway line from the A1 corridor.

Other key outcomes of the review include ultimate production targets of 90 million tonnes per annum of export coal and 30 million tonnes of domestic coal.

The Government has also outlined its commitment to the roll out of independent power projects as a critical domestic market for middlings coal - a lower energy by-product of export coal production.

A dedicated unit is being established to facilitate the coal development process in Botswana.

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