Online Reporter
Rutendo Nyeve, Victoria Falls Bureau
THE Government is reviewing coal-bed methane (CBM) gas concessions granted to five companies in Matabeleland North Province amid concerns over slow progress, with the aim of expediting development and initiating Production and Profit-Sharing Agreements (PPSAs) to unlock commercial exploitation of the gas.
Matabeleland North is believed to hold vast untapped deposits of methane gas, and the Government regards the sector as a significant contributor to clean energy generation and economic growth.
Deputy Minister of Mines and Mining Development (Oil and Gas), Engineer Caleb Makwiranzou, told Zimpapers in Victoria Falls this week that the ministry would engage concession holders to assess their progress and take corrective action where necessary.
The companies involved include local firms Alabara Resources, Zambezi Gas and Sakunda Energy, South Africa’s
Tumagole, and Shangani Energy Exploration (SEE), which is owned by Chinese steel giant Sinosteel.
Exploration activities are underway in Lupane, Gwayi and Hwange.
“What has actually happened with regards to Matabeleland North is that concessions were granted to miners for coal-bed methane gas. Unfortunately, they have not made much progress due to challenges in securing finance and other issues,” said Eng Makwiranzou.
“But what we are doing now is revisiting those concessions, and we are saying they must be worked. In other words, it’s a case of use them or lose them.”
Eng Makwiranzou said the ministry is working towards finalising PPSAs, which will pave the way for the commencement of mining operations.
In 2021, Australian firm Jacqueline Resources also joined the province’s methane gas exploration efforts.
Zambezi Gas reportedly drilled three wells in Hwange in 2023, with one showing high potential. Tumagole completed an aeromagnetic survey and identified viable drilling sites, and is expected to invest up to R55 billion. SEE has invested in electro-drilling, completing three boreholes, and plans to establish a 600MW power station and petrochemical industries worth US$780 million.
Deputy Minister Makwiranzou also provided an update on Invictus Energy’s Muzarabani project, where exploration has confirmed the presence of oil and gas.
“There has been some exploration there involving the drilling of two boreholes. The first is called Mukuyu 1 and the second Mukuyu 2. The evidence that has emerged does indeed show the presence of oil and gas in that area,” he said.
Eng Makwiranzou projected that the mining phase in Muzarabani could begin early next year, pending the successful conclusion of the PPSA by the end of the second quarter.
“We are currently at the stage of negotiating the Production and Profit-Sharing Agreement (PPSA) with the contractor. Once this agreement is finalised, the contractor will be authorised to exploit the oil and gas in Muzarabani,” he said.
The Muzarabani project, located in the Cabora Bassa Basin in Mashonaland Central, is Zimbabwe’s first onshore oil and gas prospect and is also considered one of the largest undrilled onshore prospects in Africa.
The area is estimated to contain over 20 trillion cubic feet of gas and 845 million barrels of conventional gas-condensate.
Both the Muzarabani and Matabeleland North CBM projects are critical pillars of the National Development Strategy 1 (NDS1), which aims to transform Zimbabwe into an upper-middle-income economy by 2030 through industrialisation, value addition, and energy self-sufficiency.
@nyeve14
