malvernmugadzikwa
Business Writer
LONDON-listed natural resource development firm behind the Lubu coking coal project, Contango Holdings, has completed the construction of a small-scale coke battery at its Binga plant.
The mining firm has in recent weeks been accelerating the assembling of machinery ahead of planned production beginning this month.
In an update on Wednesday, it said the pilot coke plant has been constructed to provide on-site capability to manufacture coke from washed coking coal produced at Lubu for testing by future offtake partners and for the Company’s internal studies and quality control.
Chief executive officer, Carl Esprey, said while the expected margins on coking coal production are very attractive, they have always maintained the highest margin business stems from the manufacture of coke at Lubu.
“Accordingly, we have already completed numerous small-scale tests remotely to assess the coke characteristics from Lubu, with highly encouraging results,” he said.
“The completion of the pilot coke plant will now enable us to generate larger coke production for testing, something required to enable us to conclude discussions under our MoU and, as required, provide additional samples to other parties who have expressed interest in coke produced from Lubu.
“This is a notable step in the evolution of the Lubu Project and I look forward to providing further updates with respect to the planned manufacture of coke in due course.”
Esprey indicated that the ultimate coke batteries to be installed at Lubu for future production and sales will be considerably larger and have a different specification.
He said the manufacturing of coke and subsequent studies from washed coking coal from Lubu has taken place remotely, with highly encouraging results.
“The ability to now manufacture coke on site is a significant step, providing accurate in the field results, a crucial step in securing partners in the company’s coke manufacturing strategy,” Esprey.
Coal remains the dominant energy mineral for Zimbabwe and the country boasts of vast reserves of the mineral, particularly, in the northwest and southern parts of the country.
The new investment will also boost the country’s prospects of meeting mining revenue targets of US$12 billion by 2023 under the mining roadmap launched by President Mnangagwa. The coal sector is expected to contribute US$1 billion.
Bongani Ndlovu