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Oliver Kazunga, Senior Business Reporter
MATABELELAND North-based Zambezi Gas has started exporting to Zambia and targets volumes of about 10 000 tonnes of coal per month.
Zambezi Gas chief executive officer Mr Thomas Nherera said the exports follow the successful conclusion of a deal with a cement manufacturing firm in the neighbouring country.
“We’ve sealed an export deal with a cement manufacturing plant which for now I can’t disclose because there are certain confidentialities that we’ve to maintain until a certain point.
“We’re starting by exporting 1 000 tonnes of coal peas and nuts per month. And going forward that figure will be improved to between 5 000 and 10 000 tonnes a month,” he said.
Early this year, Zambezi Gas was producing 20 000 tonnes of coal per month and had targeted to increase output to 50 000 tonnes upon installation of a $15 million coal processing plant.
Mr Nherera said the plan to install the equipment fell by the way side due to funding challenges resulting in the colliery company engaging a local contractor, Rockdrill, to undertake mining and coal processing activities complimenting Zambezi Gas operations.
As a result, Zambezi Gas, which also supplies the local market in energy, agriculture and health sectors has increased coal output to 30 000 tonnes per month.
Mr Nherera said by the end of the month coal production at the colliery would have reached the anticipated 50 000 tonnes.
Zambezi Gas’ 19 000 hectare concession is estimated to be holding 200 million tonnes of coal reserves.
Zimbabwe is endowed with vast reserves of coal mainly in the north-west and southern parts.
Over the years, the Government through the Ministry of Mines and Mining Development has issued Special Grants to indigenous investors to undertake coal mining operations but a majority of the projects are still lying idle.
The Ministry of Mines and Mining Development has indicated its intention to repossess underutilised mining claims under the “Use it-or-lose it” mining policy. — @okazunga
Online Reporter