coal mining of the lupane matabeleland zimbabwe

zimbabwe: 'use it or lose it' policy test for lupane gas miners

THE Government expects to conclude talks this month with private sector investors keen to commercially exploit coal bed methane (CBM) gas in Matabeleland North province, as the "use it or lose it" policy comes under test.

Although Zimbabwe has vast reserves of CBM with the largest being located in the Lupane area, commercial exploitation of the resource has failed over the years due to lack of serious investors, leading to under-utilisation of the reserves at a time when the country is battling energy generation gaps and is importing gas from neighbouring South Africa.

Early last year, a South African mining firm, Tumagole Consortium, expressed commitment to invest R55 billion into the coal-bed methane mining project in Lupane. In 2015, Russian energy giant, Gazprom, also expressed an interest in the extraction of coal bed methane gas in the same place. Local companies such as Sable Chemicals and Sakunda Energy have also shown keen interest.

Despite the hype, the Lupane methane gas project to date remains a pipe dream and now the Government wants to press the concession holders to act and utilise the resource for the benefit of the economy or risk losing them.

At the moment Zambezi Gas (Pvt) Limited and Discovery Investments (Pvt) Ltd are the only two mining firms registered by the Government to exploit natural gas in the Lupane area. Mines and Mining Development Minister Winston Chitando, said that talks towards an agreement with private sector players interested in exploiting methane gas were underway with emphasis being placed on utilisation.

"Government is very serious and working hard to ensure there is utilisation of our CBM resources for the development of the country. We expect by the end of October to have a Memorandum of Understanding (MoU) with one of the holders of a major CBM concession for the construction of a power station," he said.

"Discussions are also taking place with another holder of a CBM concession to ensure its utilisation. The development of the Lupane CBM gas project has the potential to boost the country's energy generation capacity."

"On all coal and CBM resources and indeed on all mineral resources, Government is actively implementing the use it or lose it principle. To date, 213 initial assets are being processed for that with the first 40 definitely being affected by the end of October," he said.

Minister Chitando is on record as saying the Government will vigorously enforce the "use it or lose it" policy to force companies to develop their mining assets instead of keeping them for speculative purposes.

Coal-bed methane or natural gas occurs in the Matabeleland North province of Zimbabwe in the Hwange-Binga-Lupane area as well as the South east Lowveld area in Chiredzi. Experts say natural gas occurs in the Karoo stratigraphic sequence above coal measures. Uses of natural gas include domestic use for heating and cooking, industrial uses in electricity generation and production of chemicals such as ammonia-based fertilisers.

Exploration and pilot production works that were conducted in the area showed that the resource can be exploited commercially for domestic and industrial use. Coal-bed methane gas can also be used to produce hydrogen, which in turn is used in the manufacture of ammonia for fertiliser.

For instance, it is estimated that Hwange and Lupane have over 800 million cubic metres per square kilometre, while further studies say the country has more than 40 trillion cubic feet of potentially recoverable gas in the Lupane-Lubimbi area, enough to generate millions of dollars in potential revenue and jobs for the unemployed in the district.

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zmdc begins coal and methane gas exploration in lupane - mining zimbabwe

However, he said the project is a massive investment that would significantly transform Zimbabwes economy in sync with Vision 2030 where the government aims to achieve an upper-middle-income economy status.

Besides power generation, there are other investment opportunities which are available in the core and downstream industries from coal-bed methane including the production of a variety of chemicals, fertiliser manufacturing, and gas-to-liquids producing diesel, specialist lubricants, and waxes.

Due to the estimated vast reserves of methane gas in Matabeleland North, companies such as Discovery Investments and China Africa Sunlight Energy are at various stages of implementing initiatives to extract the greenfield resource. However, potential investors have been saddled by challenges such as funding constraints and statutory fees.

On one hand, Discovery Investments recently indicated that its planned multi-million dollar methane gas investment is in abyss as government has invoiced the investor US$16 million in ground rental fees.

Mining Zimbabwe our core focus is the Zimbabwe Mining Industry, Zimbabwe Mining News, trends, new technologies being developed and used to improve this crucial sector, as well as new opportunities and investments arising from it.

henan mining machinery and equipment manufacturer - coal mining of the lupane matabeleland zimbabwe

... from new discoveries of coal-bed methane gas deposits in Lupane ... Zimbabwe battles to lure investors for its gas deposits ... in Matabeleland ...Zimbabwe Mining, Zimbabwe mining ... Zimbabwe and coal ... Exploration work indicated extensive deposits of methane gas in the Hwange/Lupane basin south of Zimbabwe, ...

Ore beneficiation equipment, sand making equipment, crushing equipment and powder grinding equipment, which are widely used in various industries such as metallurgy, mine, chemistry, building material, coal, refractory and ceramics.

use it or lose it policy test for lupane gas miners - mining zimbabwe

THE Government expects to conclude talks this month with private sector investors keen to commercially exploit coal bed methane (CBM) gas in Matabeleland North province, as the use it or lose it policy comes under test.

Although Zimbabwe has vast reserves of CBM with the largest being located in the Lupane area, commercial exploitation of the resource has failed over the years due to lack of serious investors, leading to under-utilisation of the reserves at a time when the country is battling energy generation gaps and is importing gas from neighbouring South Africa.

Early last year, a South African mining firm, Tumagole Consortium, expressed commitment to invest R55 billion into the coal-bed methane mining project in Lupane. In 2015, Russian energy giant, Gazprom, also expressed an interest in the extraction of coal bed methane gas in the same place. Local companies such as Sable Chemicals and Sakunda Energy have also shown keen interest.

Despite the hype, the Lupane methane gas project to date remains a pipe dream and now the Government wants to press the concession holders to act and utilise the resource for the benefit of the economy or risk losing them.

At the moment Zambezi Gas (Pvt) Limited and Discovery Investments (Pvt) Ltd are the only two mining firms registered by the Government to exploit natural gas in the Lupane area. Mines and Mining Development Minister Winston Chitando, said that talks towards an agreement with private sector players interested in exploiting methane gas were underway with emphasis being placed on utilisation.

Government is very serious and working hard to ensure there is utilisation of our CBM resources for the development of the country. We expect by the end of October to have a Memorandum ofUnderstanding (MoU) with one of the holders of a major CBM concession for the construction of a power station, he said.

Discussions are also taking place with another holder of a CBM concession to ensure its utilisation. The development of the Lupane CBM gas project has the potential to boost the countrys energy generation capacity.

On all coal and CBM resources and indeed on all mineral resources, Government is actively implementing the use it or lose it principle. To date, 213 initial assets are being processed for that with the first 40 definitely being affected by the end of October, he said.

Minister Chitando is on record as saying the Government will vigorously enforce the use it or lose it policy to force companies to develop their mining assets instead of keeping them for speculative purposes.

Coal-bed methane or natural gas occurs in the Matabeleland North province of Zimbabwe in the Hwange-Binga-Lupane area as well as the South east Lowveld area in Chiredzi. Experts say natural gas occurs in the Karoo stratigraphic sequence above coal measures.Uses of natural gas include domestic use for heating and cooking, industrial uses in electricity generation and production of chemicals such as ammonia-based fertilisers.

Exploration and pilot production works that were conducted in the area showed that the resource can be exploited commercially for domestic and industrial use. Coal-bed methane gas can also be used to produce hydrogen, which in turn is used in the manufacture of ammonia for fertiliser.

For instance, it is estimated that Hwange and Lupane have over 800 million cubic metres per square kilometre, while further studies say the country has more than 40 trillion cubic feet of potentially recoverable gas in the Lupane-Lubimbi area, enough to generate millions of dollars in potential revenue and jobs for the unemployed in the district.

Mining Zimbabwe our core focus is the Zimbabwe Mining Industry, Zimbabwe Mining News, trends, new technologies being developed and used to improve this crucial sector, as well as new opportunities and investments arising from it.

coal output projected at 15m tonnes - mining zimbabwe

COAL production in Zimbabwe is anticipated to leap to 15 million tons next year as new producers come on stream while existing ones are also expected to raise their output, a Cabinet Minister has said.

Zimbabwe boasts of huge coal deposits in Matabeleland North province where companies such as Hwange Colliery and Makomo Resources are active. Mines and Mining Development Minister Winston Chitando said production was expected to rise as several new coal mining projects were lined up.

Traditionally we produce about three million tons of coal per annum. This year we expect that we will produce just about four million tons, but the installed capacity for coal production by next year will be 15 million tons per annum, he said.

We have Liberation Mining around the Gwayi area, they already have the full equipment, which has been installed (but) there have been a few administrative issues relating to their production but they will begin production in the new year.

Zimbabwe, which started coal production in the early 1900s, has an estimated 25 billion tons of coal reserves. The country, which says its abundant mineral resources include more than 40 exploitable minerals, is seeking to maximise mineral exploitation to reboot its economy.

Meanwhile, Zimbabwe expects to start producing sufficient electricity for domestic use and surplus for export by 2024 through the exploitation of its huge and untapped Coal Bed Methane (CBM) deposits as well as investment in new thermal power stations.

Zimbabwe has one of the highest measured CBM resources in Southern Africa and is believed to be sitting on an estimated 765 billion cubic metres in the Hwange/Lupane basins. In early 2012, Mozambique discovered CBM in areas that border Zimbabwes Manicaland province into which it is believed the gas also flows.

Coal bed methane offers a cleaner alternative source of power compared to coal and the scope is even greater for its exploitation considering that Zimbabwe is battling a severe power crisis due to over-reliance on hydro power, which is affected by seasonal rainfall.

Minister Chitando has said the country expects to generate electricity from CBM within the next two years while five investors, including Afrochine, Jinan and Karo Resources were also at various stages of setting up thermal power stations.

Analysts contend that CBM exploitation presents an opportunity for Zimbabwe to lessen its dependence on imported petroleum and electricity while also providing an alternative means to produce cleaner energy from coal. New Ziana

Mining Zimbabwe our core focus is the Zimbabwe Mining Industry, Zimbabwe Mining News, trends, new technologies being developed and used to improve this crucial sector, as well as new opportunities and investments arising from it.