Zimbabwe government issues 20 coal exploration licenses

Wednesday, 28 Sep 2011

Zimbabwe, which currently imports virtually all of its oil needs, averaging roughly 14,000 barrels per day, is seeking to expand its indigenous energy resources, particularly coal.

Mr Obert Mpofu Zimbabwe Mines and Mining Development Minister said during the third Zimbabwe Mining Indaba that "We have awarded 20 licenses for coal exploration and mining. This should help in ensuring that the country can generate adequate electricity for the economy in general."

The five firms awarded licenses were Makomo Investments, WK Blasting, Clidder, Apex and Liberation Mining. The majority of the 20 companies receiving prospecting licenses are joint ventures with Zimbabwean partners owning controlling stakes in accordance with the Zimbabwe indigenization and empowerment law.

Business research and consulting firm Frost and Sullivan reports that Zimbabwe has coal reserves that will approximately last the next 200 years at a production output of 5 000 tons per annum with the coal reserves being suitable for providing feedstock for coal-powered thermal power stations. In addition, the Zimbabwe Electricity Regulatory Commission recently licensed 13 independent power projects.

(Sourced from Oil Price)

INDIA'S SIMHAPURU TARGETS S.AFRICAN COAL

Feb08,2011
Economic Times reported that, India's Simhapuri Energy , a unit of the Madhucon Group , wants to buy new or existing collieries in South Africa from where it aimed to export a minimum of 5 million tonnes within five years, an official said on Tuesday.
ET furhter reported that, Indian companies are buying coal assets in top five global exporter South Africa as it moves to secure resources for a growing economy and to feed coal into new power plants.

"We want to invest in coal and are looking at some acquisitions. From South Africa we are targeting a minimum of five milion tonnes of coal for export within five years," Nama Krishnaiah, director of Simhapuri Energy, told Reuters on the sidelines of an African mining conference.
Displacing Europe, India and China are emerging as the two main destinations for coal from South Africa, which last year shipped some 63 million tonnes of thermal coal.
Maducon Group has interests in the construction, coal and sugar industries, with Madhucon Projects listed in Bombay.

Krishnaiah said the company, which recently opened offices in Johannesburg, was in discussions with unnamed junior miners, as well as applying directly to the Department of Mineral Resources for mining licenses.
"At this moment we are targeting some brownfield projects that have mining licenses, but we are looking at greenfield (developments) also," said Krishnaiah, adding that Zimbabwe's coal fields were also attractive.

He said the company, which was developing a 1,920 megawatt power plant near India's Krishnapatnam port, was financially strong and had capital to purchase coals assets.
The company already owns coal mines in Indonesia. (Source:Economic Times)
Tags:Feb 2011, India, Simhapuri Energy, Madhucon group, buy, new or existing colllieries, South Africa, China, Zimbabwe coal fields, coal export, Krishnapatnam port

If you believe an article violates your rights or the rights of others, please contact us.