Five firms make progress on coal-bed methane gas e...

Five firms make progress on coal-bed methane gas exploration in Mat North

Zim Now Writer

Government has said it is satisfied with the commitment of five of the six companies awarded licenses to explore coal-bed methane gas in Matabeleland North Province as they are all at different stages of project development.

“Exploration is capital intensive and time-consuming, it’s not something that can be done within a year and completed so we have investors who are doing exploration and we are satisfied with their progress as exploration results are coming through to the Government. …..there is some work going on there by the five investors and as Government, we are quite satisfied with the progress that those companies have made with regards to exploration activity,” said Mines and Mining Development Deputy Minister Dr Polite Kambamura explaining why it may appear that there are no developments since licenses were awarded

Government awarded special licenses are Alabara Resources, Zambezi Gas and Sakunda Energy Tumagole and Shangani Energy Exploration in 2020, while Australian owned Jacqueline Resources got its license in 2021 to explore and develop clean electricity generation in Lupane, Gwayi and Hwange

The deputy minister said he could not publicly share the full status reports as that would compromise some shareholder interests.

“Some of those companies (investors are listed) and thus we cannot publicise the works that they are doing but they are companies which the Government signed some joint ventures with on exploring for coal-bed methane gas,” Kambamura said.

Zambezi Gas, which has the CBM special grant in Hwange District is reported to have drilled three wells down to a depth of 700 metres, with one of them considered highly promising.

Tumagole has been reported to have carried out an aero-magnetic survey and identified drilling positions for exploration with an intended investment of R55 billion into the extraction of methane gas in Zimbabwe.

Shangani Energy Exploration says it will invest US$780 million to build a 600MW power station and petrochemical-related industries and has carried out electro-drilling, with three holes having been completed.

Believed to have huge deposits of untapped CBM, the Matabeleland North province projects could help offset Zimbabwe’s power shortages and provide a much needed boost to the regional power pool as South Africa and Zambia are also affected by the energy shortages.

Dr Kambamura said that the use- it or lose-it policy is an ongoing process and that government is giving grace periods to license holders who have not made any discernible progress.

“Usually when we write to title holders of our intention to cancel, we give those people time to respond and show us their plans with regards to those assets,” said Dr Kambamura.

“The bottom line is not just to take assets from people but we want people to use those mining assets extracting the minerals which they have applied for.

But failure to satisfy the Government of any concrete plans, then that title gets repossessed by the State for re-allocation to prospective productive investors,” said Dr Kambamura.