Batla Minerals obtains prospecting licenses in Namibia and South Africa

Batla Minerals, an international company that historically has specialized in the research, exploration and operation of diamond mines, announced its receipt of prospecting licenses for coalbed methane (CBM) in South Africa and Namibia.

In South Africa, Great Force Investments 120 (Pty) Ltd, a joint venture between Batla Minerals (37%) and other South African investors, has obtained a prospecting license for 17,000 hectares in the northeast Limpopo province.

In Namibia, CBM prospecting rights have been granted to Aranos Gas Ltd., a joint venture between Batla Minerals (27%), SADC Minerals (a private Namibian firm), and other Namibian investors. The rights extend over an area of 15,000 hectares in the Aranos basin.

On both sites, Batla Minerals and its partners are pursuing a program of surveys, drilling and measurements of gas flow to corroborate preliminary historical studies that reported significant CBM reserves. The results of these surveys are expected in the second half of 2010.

CBM - a cleaner energy resource

Coalbed methane (CBM) or 'coal gas' is a name given to methane (natural gas) recovered from coal seams. CBM, which represents a potentially significant energy resource, is experiencing a growing interest in many regions, both to alleviate dependency on gas and for environmental reasons (through the control of emissions of greenhouse gas emissions under the Kyoto Protocol).

The uses of CBM are many, including energy and transportation fuel, petrochemicals, and the metal industry. However, the bulk of CBM consumption is intended for energy-sector electricity. CBM is the cleanest of fossil fuels and burns without producing smoke ash.

A new strategic diversification for Batla Minerals

At the end stages of exploration, Batla Minerals plans to forge partnerships for the construction and operation of power plants on the CBM sites. Given the significant energy deficit in Namibia, and to a lesser extent South Africa, the use of CBM as a fossil fuel is a positive strategic response to reduce regional energy dependency.

By obtaining these CBM prospecting licenses, Batla Minerals continues its strategy of diversifying into new mineral resources with high economic value, with the aim of maximizing its mining portfolio. Besides its traditional business in diamonds, the Group is also involved with uranium, tungsten/molybdenum and coalbed methane.