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Bongani Ndlovu Business Correspondent
BOTSWANA is planning to use Zimbabwe’s railway network to transport coal to Mozambique for export to Asian markets. The development has the potential to help cash strapped National Railways of Zimbabwe boost its freight volumes. According to Botswana Ambassador to Zimbabwe Kenny Kapinga, Botswana had huge coal deposits that they wanted to export to Asian markets and Zimbabwe was strategic in transporting the fuel.

He said it was cheaper to transport the coal through Zimbabwe compared to using Richards Bay or Durban in South Africa as it would mean crossing the Waterberg and Drakensberg mountains.

“The coal we want to export will be moved across Zimbabwe via Bulawayo to Mozambique ports there. We are eyeing the Asian markets and we have identified Zimbabwe as strategic in fulfilling our goals as a country. The route will be from Botswana via Bulawayo to a place called Ponta Techobanine in Mozambique,” he said.

Data from Goldman Sachs and other industry sources showed that Asian demand for thermal coal is projected to rise by 103.46 million metric tonnes to 845.05 million in 2018 from an estimated 741.59 million metric tonnes last year.

Ambassador Kapinga said they were already in talks with their Zimbabwean counterparts but could not reveal how exactly they were going to partner each other.

“We have already met with my Zimbabwean counterparts and we are discussing the issue. I can’t reveal how exactly we are going to work together as we are yet to finalise the deal,” he said.

Ambassador said what was left was to finalise the technical aspects between representatives of railway bodies of both countries.

“We have met the Ministry of Transport and Infrastructure Development and what is left now is the people from the Botswana Railways to meet with those from the National Railways of Zimbabwe. This to iron out technical issue between the two,” he said.

Botswana has estimated coal resources of 212 billion tonnes, of which 7.1 billion tonnes are measured reserves.

The only working colliery is at Morupule, located in Palapye Botswana. It produces about 3 million tonnes of coal annually to supply the 120mW Morupule power station, which is owned and operated by Debswana—a partnership between the government of Botswana and De Beers.