BUSINESS REPORTER
A unit of London Stock Exchange listed resources firm, Contango Holdings, is expecting to commence production of coking coal next week following the calibration of the processing equipment and connection of power to key infrastructure.
Contango controls a 70% stake in the Lubu Coal Project, located in Binga district, Matabeleland North Province, with the remainder held by local partners.
“This week the company will connect its fully refurbished 600 tonnes-per-hour screen to the wash plant, which is the final equipment requiring installation ahead of the first production,” Contango CEO, Carl Esprey, said.
“Accordingly, the company anticipates the commencement of
processing and production of coking coal from next week, as well as calibration of the processing equipment to optimise output.”
He said the company has now completed several key activities about commencing production at Lubu including the completion of grade control drilling, completion of the pollution control dam and 600 000 litre settling ponds, and removal of overburden enabling access to the targeted coking coal seam.
Contango will also carry out studies and training in the laboratories, the connection of power to key infrastructure on-site including the wash plant and laboratories, and installation of the ramp and bins to feed the wash plant with Lubu coal, Esprey said.
The wash plant is expected to produce 20 000 tonnes of washed coking coal per month.
According to experts, the investment will help to contribute to the revenue targets of US$12bn by 2023.
This is one of the key projects that will help the coal sub-sector to meet the US$1bn target this year.
Lubu Coal Project is also expected to trigger a string of economic by-products for the community including job creation while boosting the country’s energy sector, as well as exports.
Contango has started constructing modern homes for families displaced by the setting up of a coking coal production plant with close to 20 houses nearing completion.
The new homesteads are being constructed in a valley north of the mine and comprise three-roomed houses, which are at roof level, two round-thatched huts, and a toilet.
