admin
Leonard Ncube Victoria Falls Reporter—
THE government will not cancel mining concessions given to some companies doing explorations in Matabeleleland North despite taking long to start extraction of the minerals, a Cabinet Minister has said. There has been concern that companies doing explorations in coal-bed methane gas in the Gwayi area near Lupane were taking too long to start extraction after the Zimbabwe Mining Development Corporation gave them the concessions in the past few years.
The awarding of the concessions were part of government efforts to boost energy production by setting up new power stations and creating employment for scores of jobless Zimbabweans.
Mines and Mining Development Minister Cde Walter Chidhakwa told Chronicle on the sidelines of the Chamber of Mines 75th Annual General Meeting in Victoria Falls on Friday that while government was working hard to reopen disused mines, it would not be hard on explorers who were given new concessions.
“Until they make a discovery of the mineral they cannot be said to have failed. They are still doing exploration and only when one is not doing anything on the ground that we can re-allocate concessions to others but for now something is happening,” he said.
Asked to comment whether the mining companies were carrying out mining activities outside government knowledge, Cde Chidhakwa said, “They cannot mine until they formalise.”
Recently, China-Africa Sunlight, which applied for a power-generation licence from the Zimbabwe Energy Regulatory Authority after completing its explorations, sought to establish a power station to produce 120 megawatts (MW) electricity output. It has contracted Environmental Guardians Services to conduct an environmental impact assessment for the project.
Studies have revealed that coal-bed methane deposits in the country have capacity to produce 300MW of electricity.
The government also challenged ZMDC to immediately start exploring its coal-bed methane gas concessions in the Lupane-Lubimbi area.
Cde Chidhakwa said concerted efforts were being made to revive disused mines such as Mashaba, Mhangura and Kamativi tin mine.
Estimates say Zimbabwe has 40 trillion cubic feet of potentially recoverable gas in the Lupane-Lubimbi area. The development of the Lupane coal-bed methane gas project has potential to boost the country’s energy generation capacity.
A recent World Bank report urged the government to develop a clear strategy to extract the gas.
Besides gas for electricity generation, there are other investment opportunities which are available in the core and downstream industries from coal-bed methane including production of a variety of chemicals, fertiliser production and gas to liquids producing diesel, specialist lubricants and waxes.
Online Reporter