Botswana's President Mokgweetsi Masisi on Wednesday ordered the start of operations at a coal mine that is expected to produce about 1.4 million tons per year.

"Botswana must take advantage of this opportune moment that has presented itself to us, to fully exploit this resource to feed emerging and diversified markets," Masisi said.

As of now, the state-owned mining company Morupule Coal Mine (MCM) is committed to increasing exports following increased demand for the fuel since the start of the war in Ukraine.

Botswana is estimated to have a coal capacity of around 212 billion tons. However, the state-owned mining company was the only one operating in the country until 2019, when Minergy Ltd applied to operate a new mine with an annual capacity of 1.2 million tons.

Many European and Asian countries are scrambling for alternative fuel sources given the global energy crisis, and Botswana wants to become a key coal producer, having already increased maritime exports by 2022 through Maputo and Walvis Bay.

The new open-pit mine, which will increase MCM's 50% production to 4.2 million tons per year, is part of its strategy to supply multiple markets with a cumulative total of 7.6 million tons of coal per year by 2027, in turn increasing revenues to $222.6 million from the $1 billion forecast for 2023.

MCM currently produces 2.8 million tons of coal per year from its underground mining operations, feeding two nearby state power plants and exporting to South Africa, Namibia and Zimbabwe.

The open pit mine has the potential to supply coal to power plants for over 30 years.

Minergy said last week that its total sales volume for the fiscal year ending June 2022 increased by 40%, with record sales achieved in May 2022.