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Oliver Kazunga Business Reporter
MINING concern, Zambezi Gas will later this month start coal mining operations in Matabeleland North province following the recent completion of exploration work at the mine. The company also looks forward to venturing into coal-bed methane gas drilling in future.
Zambezi Gas chief executive officer Mr Thomas Nherera, whose company was initially seeking a strategic partner to raise more than $100 million for its projects in Hwange District, was in the meantime focusing on a $12 million coal mining project.
“We will be starting coal mining operations at the mine towards the end of November following the completion of exploration work. For the coal project, we are using local resources to the tune of $12 million,” he said.
He said the coal mining operations would start with 50 workers and as production increases from 40 000 tonnes a month, the labourforce will be gradually increased.
The firm’s coalfields have more than 200 million tonnes of coal reserves across about 19 000 hectares.
“For the coal-bed methane gas project, we have not been able to secure a strategic partner for the $100 million project. This is because of the overall economic status of the country,” he said.
Mr Nherera said despite the failure to secure a strategic partner, Zambezi Gas remains focused to pursue the coal-bed methane gas project.
“Even if we embark on coal mining, the operations will not disturb the extraction of coal-bed methane gas. We still remain focused that in future we will be able to tap into the gas operations.”
Asked whether his company had a ready market for coal, he said the demand for the black gold in Zimbabwe was not being met adding that Zambezi Gas was eying to penetrate regional markets such as South Africa, the Democratic Republic of Congo and Zambia.
“Locally, we will be looking at the agriculture sector mainly the tobacco farmers who in recent years have been cutting down trees to cure their tobacco and the method is not environmentally friendly unlike using coal.”
Zambezi Gas was granted special gas and coal concessions in 2003 and 2007 respectively but lack of technical and financial resources delayed the investments from going beyond exploration stages.
In line with the Indigenisation and Economic Empowerment Act, indigenous shareholders control 51 percent in Zambezi Gas, while the remainder is owned by foreign investors.
Online Reporter