Coal prospects in Botswana, Mozambique, Zambia, prospects in...1 Introduction Coal prospects in Botswana, Mozambique, Zambia, Zimbabwe, and Namibia 7 Southern Africa has a wealth of coal resources as proven by the massive coal ...

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<ul><li><p>Coal prospects in Botswana,Mozambique, Zambia,Zimbabwe and Namibia</p><p>Paul Baruya, John Kessels</p><p>CCC/228 ISBN 978-92-9029-548-8</p><p>December 2013</p><p>copyright IEA Clean Coal Centre</p><p>Abstract</p><p>Increasing demand for coal in Asia is stimulating interest in the potentially large coal resources inSouthern African countries such as Botswana, Mozambique, Zambia, Zimbabwe and Namibia. Thesecountries have been slow to utilise their coal as local demand has been limited and the means toexport coal has been inadequate. The governments in these regions are now recognising coal as astrategically important commodity, capable of earning foreign revenue but also adding value to theeconomy by generating much needed electricity. This report looks in turn at the role of coal in theenergy economies of each of these countries. As in most emerging economies, the provision of areliable and cost-effective supply of electricity to industries and people is essential for economicgrowth and the welfare of communities. Demand for Africas mineral commodities such as diamondsand copper is driving a massive need for electricity and coal will play a major role. Not only does themining industry need power, but with these growing industries come communities and commercewhich are also in need of energy.</p></li><li><p>Acronyms and abbreviations</p><p>2 IEA CLEAN COAL CENTRE</p><p>ADGB African Development Group BankAfDB African Development BankAER African Energy ResourcesBAGC Beira Agricultural Growth CorridorBEMP Botswana Energy Master PlanBPC Botswana Power CorporationCCS carbon capture and storageCO2 carbon dioxideCFM Portos e Caminhos de Ferro de MoambiqueCIA Central Intelligence AgencyCFP central processing facilityCERs certified emission reductionsCFBC circulating fluidised bed combustionCDM Clean Development MechanismCBEND Combating Bush Encroachment for Namibias DevelopmentCBM coalbed methaneCTL coal-to-liquidCVRD Compania Vale de Rio DoceCSP concentrated solar powerCEC Copperbelt Energy CorporationDFRN Desert Research Foundation of NamibiaDRC Democratic Republic of CongoDNA designated national authorityDME dimethyl etherEDM Electricidade de MozambiqueENE Empresa Nacional de Electricidade AngolaERB Energy Regulation BoardECN Energy Research Centre of the NetherlandsECBM enhanced coalbed methaneENRC Eurasian Natural Resources CorporationESI electrical supply industryFAM armed forces of MozambiqueFSI free swelling indexFRELIMO Front for Liberation of MozambiqueFUNAE Fundo de Energia GDP gross domestic productGt gigatonneGJ gigajouleGWh gigawatt hourHCB Hidroelctrica de Cahora BassaHVDC high voltage direct currentHCC Hwange coking coalHIC Hwange industrial coalIDC Industrial Development Corporation (South Africa)IPP independent power producerJORC joint ore reserves committeeJV joint ventureKSE Karoo sustainable energykWh kilowatt hourLULUCF land use, land use change and forestry</p></li><li><p>LNG liquefied natural gasLHPC Lunsemfwa Hydro Power Company MCL Maamba Collieries Limited MW megawattMWe megawatt electric MEPD Ministry of Energy and Power DevelopmentMEWD Ministry of Energy and Water DevelopmentMEWT Ministry of Environment, Wildlife and TourismMMEWR Ministry of Minerals, Energy and Water ResourcesMEP Mmamabula Energy ProjectNAMCOR National Petroleum Corporation of NamibiaNAPA National Adaptation Plan of ActionNAMAs national appropriate mitigation actionsNDP national development plansNEP National Energy PolicyNO nitrous oxideOPPPI Office for the promotion of private power investmentPEDSA Ministry of Agricultures agricultural sectoral development strategic planPER panafrican energy resourcePRA petroleum regulatory authorityPPA power purchase agreementPSDRP private sector development reform programme PF pulverised fuelRENAMO Mozambique National Resistance MovementREEEP Renewable Energy and Energy Efficiency PartnershipROM run of mineREA rural electrification authoritySIRDC Scientific and Industrial Research and Development CentreSNEL Socit National dElctricitSACCCS South African centre for carbon capture and storageSADC Southern African development communitySAPP Southern African power poolSEC Swaziland electricity companyTANESCO Tanzania electricity supply company limitedTNA technical needs assessmentTCM Terminal de Carvao da MatolaTWh terrawatt hourTFR Transnet Freight RailUCG underground coal gasificationUNIP United National Independence PartyUNDP United Nations Development ProgrammeUNFCCC United Nations Framework on Climate ChangeWEC World Energy CouncilWHO World Health OrganisationZESCO Zambia Electricity Supply Corporation LimitedZERA Zimbabwe electricity regulatory authorityZERC Zimbabwe electricity regulatory commissionZESA Zimbabwe electricity supply authorityZETDC Zimbabwe electricity transmission and distribution companyZEEP Zimbabwe energy efficiency projectZPC Zimbabwe Power Company</p><p>3Coal prospects in Botswana, Mozambique, Zambia, Zimbabwe, and Namibia</p></li><li><p>Contents</p><p>Acronyms and abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2</p><p>Contents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4</p><p>1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7</p><p>2 Mozambique . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.1 Basic facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82.2 Economy and policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9</p><p>2.2.1 Energy policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112.2.2 Coal policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112.2.3 Electricity market policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112.2.4 Climate change policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12</p><p>2.3 Energy demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122.4 Energy resources (non-coal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13</p><p>2.4.1 Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132.4.2 Renewable energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14</p><p>2.5 Coal resources and quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142.6 Coal production emergence of a new export industry. . . . . . . . . . . . . . . . . . . 15</p><p>2.6.1 Vale Moambique Limitada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172.6.2 Rio Tinto . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172.6.3 Nippon steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172.6.4 Beacon Hill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172.6.5 Jindal Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182.6.6 Mine and associated power projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18</p><p>2.7 Coal export prospects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182.8 Power generation and supply dominance of hydro-electric power . . . . . . . . . 212.9 Electricity demand scenarios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232.10Coal-fired power generation an emerging fleet? . . . . . . . . . . . . . . . . . . . . . . . 232.11 Future coal demand trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252.12Advanced coal technology prospects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25</p><p>2.12.1 Coal to liquids. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262.12.2 Biomass. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26</p><p>2.13Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26</p><p>3 Botswana. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283.1 Basic facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283.2 Economy and policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28</p><p>3.2.1 Energy policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293.2.2 Climate policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293.2.3 Coal policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30</p><p>3.3 Energy demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313.4 Energy resources and reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32</p><p>3.4.1 Oil and gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 323.5 Coal resource and quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 333.6 Coal production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 333.7 Prospects for coal exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363.8 South Africa potential key partner in coal development . . . . . . . . . . . . . . . . . 373.9 Power generation and supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373.10Electricity scenarios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 383.11Coalbed methane (CBM) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 383.12Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40</p><p>4 IEA CLEAN COAL CENTRE</p></li><li><p>4 Zambia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414.1 Basic facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414.2 Economy and policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41</p><p>4.2.1 Constitutional issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 424.2.2 Energy and electricity policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 424.2.3 Climate change policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43</p><p>4.3 Energy demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 444.4 Coal demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 454.5 Energy resources (non-coal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 454.6 Coal resources and quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 464.7 Coal production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 464.8 Power generation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 474.9 Coal-fired power generation a new beginning. . . . . . . . . . . . . . . . . . . . . . . . . 484.10 Power scenarios. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494.11Coalbed methane. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 504.12Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50</p><p>5 Zimbabwe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515.1 Basic facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515.2 Economy and policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51</p><p>5.2.1 Constitutional issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 525.2.2 Energy policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 525.2.3 Electricity market policy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 535.2.4 Climate change policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 545.2.5 Clean development mechanism (CDM) . . . . . . . . . . . . . . . . . . . . . . . . . 545.2.6 Energy efficiency . . . . . ....</p></li></ul>

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