Australian gas exploration and production company Botala Energy has secured a mining licence (ML0052/2025) for its Serowe coal bed methane (CBM) project in Botswana.
This licence, granted under Section 39 of the Mines and Minerals Act of Botswana, provides the necessary regulatory approval for project development and commercial production.
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The licence follows the successful completion of environmental and planning approvals, alongside feasibility assessments, ensuring compliance with all key regulatory requirements.
The new licence grants Botala the right to produce CBM natural gas within the approved licence area for a period of ten years, with an option to renew for a further 25 years.
The licence area incorporates most of the region previously designated under Prospecting Licences PL356/2018 and PL400/2018.
The Botswana Government now has a 90-day window to determine whether to exercise its option to acquire a 15% equity stake in the project, as outlined in Section 40 of the Mines and Minerals Act.
Should this option be exercised, Botala is expected to receive approximately A$2.2m ($1.3m).
The Government of Botswana is entitled to a royalty of 3% of the gross market value, which is calculated at the mine gate based on an arm’s length sale.
Botala Energy CEO Kris Martinick said: “The granting of the mining licence is a defining moment for Botala and a major de-risking milestone for the Serowe CBM Project. It removes the final regulatory hurdle and provides us with the green light to transition from exploration to development, bringing us closer to first revenue.
“With all environmental and planning approvals secured, our fieldwork advancing and the bankable feasibility study progressing, we have strengthened our position to deliver a commercially viable gas project. These developments coincide with the growing energy demand in southern Africa. We look forward to accelerating our development efforts to bring much-needed natural gas to the region.”
Having secured the regulatory framework, Botala is ramping up development activities such as drilling extra wells, enhancing infrastructure and completing its bankable feasibility study (BFS).
