Online Reporter
Nqobile Bhebhe
Zinpapers Business Hub
UNITED KINGDOM-BASED Contango Holdings Plc is set for a significant transformation as it transitions from an operating to a royalty-based business model, with its Muchesu coal project in Binga at the centre of the new strategy.
In its annual report for the year ended May 31, 2025, the company said its focus would be on deriving sustainable value from royalties, while supporting the development of the Muchesu Mine by its new operating partner, Huo Investments (Pvt) Ltd.
“Looking to 2026, Contango is transitioning from an operating company to a royalty-based business model.
“The board will continue to support Huo Investments as it completes the development programme at Muchesu, with first commercial production targeted for early 2026,” said Contango chairman, Mr Gordon Thompson.
The shift follows the signing of definitive agreements on July 3, 2024, which saw Contango pass operational control of Monaf Investments (Pvt) Ltd to Huo Investments.
Contango retained 24,75 percent in Monaf Investments, which holds proprietary rights over the Muchesu project, after selling 51 percent to Huo Investments.“Contango will continue to hold a 24 percent interest in Monaf and will continue to support Huo
Investments in advancing the Muchesu Mine into a sustainable mining operation, focused on producing high-quality coking coal for industrial use across southern Africa,” Mr Thompson said.
He added that while the original strategy was to secure offtake agreements to underpin development, the company was presented with an alternative path that unlocked greater potential for Muchesu.
Contango is a UK-based natural resource development company focused on mining and exploration projects, primarily the Muchesu Coal Project in Zimbabwe and the Garalo gold project in Mali.
