Almot Maqolo, Staff Writer 
CONTANGO Holdings says its wash plant will be able to generate 20 000 tonnes of washed coking coal each month once it has been calibrated and is working effectively.
The London-listed natural resource company is developing the Lubu Coking Coal Project in Hwange, Zimbabwe. In an update, the miner said the wash plant arrived on site last Friday, and has been unloaded in preparation for assembly.
“The wash plant site and foundations were prepared in anticipation of its delivery, therefore construction and assembly are expected to take approximately three to four weeks, with commissioning following thereafter,” said the company.
“In addition, the company also expects to take delivery at the site of its surface miner (Wirtgen 2200SM) in the coming days. The surface miner has a cutting width of 2200mm, ideal for selective mining, and can mine up to 500 tonnes per hour.”
In the first half of February, the laboratory is also expected to arrive at the site. “Following its delivery, all significant capital items will be on site, enabling the company to ramp up activity ahead of first production and sales at the end of Q1 2023,” added the company.
The Lubu Coal project is known locally as “Muchesu”. In December 2022, Contango Holdings entered into a non-binding Memorandum of Understanding (Mou) with a leading multi-national company with respect to its Lubu Coal Project. Following several site visits and a preliminary analysis of a 50-kg sample of Muchesu-washed coking coal, the Mou outlines a framework for collaboration not only in coking coal but also in coke manufacture.
The intention is to undertake a stage-gated due diligence exercise that will look at all aspects that would underpin either a coking-coal offtake agreement or the possibility of establishing a coking plant adjacent to the Muchesu Mine.
Based on current timelines, the company would aim to conclude the first phase (concept/pre-feasibility) of the due diligence exercise in the first quarter of 2023, after which a decision will be made about whether and how best to proceed to the subsequent phases.
Depending on how the global economy develops, the country’s reliance on mining commodities could be a boon or a curse, according to experts. The mining sector currently makes up 73 percent of foreign direct investment, 83 percent of exports, 19 percent of government revenue, 2 percent of direct formal employment, and 11 percent of national income.
The southern African nation is envisioning a US$12 billion mining industry starting this year. Of the US$12 billion, gold, platinum, and diamonds will contribute US$4 billion, US$3 billion and US$1 billion, respectively. Chrome, iron ore and carbon steel will contribute US$1 billion, while coal and hydrocarbons will do the same.
Other minerals will contribute $1,5 billion, while lithium will contribute $500 000. Accordingly, the mining industry’s power requirements are expected to more than double in the next few years, in line with the country’s ambitious plan to raise mining output and earn the country US$12 billion a year.
