Modern Mining October 2023

COAL

Contango eyes regional dominance Following the official launch of its flagship asset the Muchesu Coal Project – formerly known as the Lubu Coal Project – in Zimbabwe, coal junior, Contango Holdings, recently received its export permit from the Zimbabwean government, which allows the miner to sell its product regionally and internationally, CEO Carl Esprey tells Modern Mining . By Nelendhre Moodley .

S ince Contango’s acquisition of the Muchesu Coal Project three years ago, the company has delivered first production, a key milestone which underpins its strategy of expanding pro duction by as much as 100 000 tpm within the next two years. The official launch of the Muchesu Coal Project took place on 31 st July, at a ceremony well attended by the political elites in Zimbabwe, including President Emmerson Mnangagwa, mining ministries and the local community. “The project is a good story to tell, not only for Contango, but also for Zimbabwe and the local com munity in which we have invested heavily, in terms of community initiatives including the development of new houses” says Esprey. Contango holds a 70% interest in the Muchesu Coal Project, with the remaining 30% held by sup portive local partners. The project covers 19 236 hectares of the highly prospective Karroo Mid Zambezi coal basin, located in the established Hwange mining district in north western Zimbabwe. Advancing the Muchesu Coal Project While there is a great need for coking coal to fire up steel mills and the like, investors with deep pockets

“The project is a good story to tell, not only for Contango, but also for Zimbabwe and the local community in which we have invested heavily, in terms of community initiatives including the development of

CEO Carl Esprey.

are reticent to invest in the development of coking coal projects. Metallurgical coal or coking coal is a grade of coal that can be used to produce good-quality coke. Coke is an essential fuel and reactant in the blast furnace process for primary steelmaking. The demand for metallurgical coal is highly coupled to the demand for steel. While some investors are reluctant to fund coal projects, given the negative associations with being a ‘dirty’ commodity, Esprey explains that there is “currently no scenario where the world doesn’t rely on coking coal for the production of steel, chrome or copper”.

new houses” says Esprey.

The official launch of the Muchesu Coal Project was well attended by the political elites in Zimbabwe.

10  MODERN MINING  October 2023