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Wilson Dakwa, Business Reporter
NEW coal mining concern, Liberation Coal Mining, which is expected to start operations this week has entered into a coal supply contract with a Cyprus firm.
Speaking after a tour of the mine’s site, which followed a stakeholders’ review of the Liberation Coal Mining’s Environmental Impact Assessment (EIA) Report, technical director Engineer Peter Mutsinya said the company was mainly eyeing the export market.
“Based on the trials which we have done and the results from these, we will begin at 50:50 ratio for the export markets and local market respectively.
As the years go on, we will increase our ratio in favour of the export market, with our initial target being 90:10. We want to be one of the largest producers of coal in Southern Africa.
“We have signed a coal supply agreement of over 10 years with a company called Krunch Limited which is based in Cyprus. The company is already exporting about 15 million tonnes per annum to Europe and other continents. From Liberation Mine, they are expecting to get five million tonnes per annum,” he said.
Krunch Limited was established in 2014 and since then it has been an active coal trader supplying the product to all continents.
Eng Mutsinya said the coal mining company was engaged in negotiations with rail companies for the movement of its product through their transport network.
“We have approached Transnet Consortium and reached an agreement which is fairly favourable in terms of business. We have agreed on an economical rate. With NRZ, we have begun negotiations to see how best we can form a Public Private Partnership (PPP) whereby we will look for investors to Build, Operate and Transfer a line, which will start off from the mine to Dete, Dete through to Maputo and another line to Beira. This can only be through concerted efforts from all coal producers in Matabeleland North Province, because we won’t be the only ones involved. Soon after the rebuilding, we will be looking at investing in locomotives and wagons which will be controlled by the PPP entity to be commissioned,” he said.
Liberation Coal Mining is set to receive its Coal Production Licence this week.
The company’s environmental consultancy firm, Environmental Guardians Services (EGS) senior consultant Mr Michael Montana said measures have been put in place to reduce environmental hazards culminating from mining activities.
Part of the company’s mining activities would be conducted at the throwback of the Gwayi-Shangani Dam, a situation, which is likely to result in Acid Mine Drainage.
“Acid Mine Drainage is likely to be as a result of the geo-chemical reaction of surface water (rainwater or pond water) and shallow sub-surface water with rocks that contain sulphur-bearing minerals, resulting in formation of sulphuric acid. Hence, we have since formulated a water management plan which involves water reticulation whereby water will be recycled and won’t come into contact with main streams before it is properly purified. We have also drafted management plans for soil, air pollution, noise and blasting, biodiversity, waste and hazardous waste,” said Mr Montana.
He, however, urged the miner to desist from using coal residuals to pave their roads as this was likely to cause mild acid drainage through run-off.
Speaking at a stakeholders meeting in Lupane, Eng Mutsinya said as part of the company’s corporate social responsibility it was looking forward to fully refurbishing and equipping Gwayi Clinic as well as drilling 22 boreholes to ease water challenges in the community.
He added that in a bid to ensure that the mine uplifts livelihoods in the community from which it operates from, a local committee had been set and tasked to conduct the recruitment of semi-skilled and unskilled workforce.
Chief Dingani Nelukoba, the traditional leader whose jurisdiction the mine falls under said the company would play a pivotal role in employment creation since most of the youths in the area were unemployed.
“Liberation Coal Mining is going to bring about development in terms infrastructure, scholarships and employment creation. Currently, about 50-60 percent of their workers are locals. When I initially heard about this project, my concern was that people would be displaced. Now that they have assured me that there won’t be anything of that nature, this project is a welcome development,” he said.-@WilsonDakwa1
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