Government reviews EPOs for coal-bed methane explorations

Harare Bureau

Government has started reviewing Exclusive Prospecting Orders (EPOs) granted to investors three years ago for coal-bed methane to assess the investors’ commitment to these projects, an official has said.

In 2021, the Government granted five EPOs to prospective investors interested in coal bed methane. The special grants were issued to Alabara Resources, Sakunda Energy, Tumagole of South Africa, Zambezi Gas, and Shangani Energy Exploration.

Coalbed methane is a natural gas trapped within coal seams. When extracted and burned, it can be a highly efficient and environmentally friendly fuel source for power generation.

In an interview last Friday, Mines and Mining Development Deputy Minister Dr Polite Kambamura said several factors would be considered when approving or rejecting an EPO.

These include investor’s financial capacity to fund the project, the scope of the prospecting work, and the company’s reputation.

“So, we will be looking at all those issues (such as) do (holders) have the capacity? Have they done similar work elsewhere? Do they work in other EPOs in the country because we do not want people to just hold for speculation,” he said.

EPOs grant investors exclusive rights to explore for specific minerals within a designated area in Zimbabwe. This allows them to potentially discover new deposits, leading to the establishment of new mines or the expansion of existing operations.

They are initially granted for a three-year period, with the option for renewal for another three. However, reviews have often indicated limited progress on the ground, prompting the Government to take a more stringent approach with EPO holders.

Zimbabwe is believed to possess vast reserves of untapped coal-bed methane (CBM), particularly in the Matabeleland North region. The Lupane and Hwange districts are estimated to contain over 800 million cubic meters per square kilometre of CBM.

Additionally, further studies suggest that Zimbabwe has over 40 trillion cubic feet of potentially recoverable gas in the Lubimbi area of Lupane.

Zimbabwe’s current power generation capacity falls short of meeting its growing energy demands.
With a peak demand of 2 200 megawatts (MW) and an average generation of 1 300 MW, the country faces a significant power deficit.

To achieve its ambitious goal of becoming an upper-middle-income society by 2030, Zimbabwe requires a substantial increase in power generation.

Harnessing the potential of coal-bed methane could play a crucial role in addressing this energy shortfall. By tapping into its vast CBM reserves, Zimbabwe can significantly boost its power generation capacity and meet the increasing demand for electricity.