Categories: Stories

Zimbabwe to export coal to Europe next year

London-listed Contango Holdings says it plans to start exporting thermal coal early next year from its Zimbabwe mine following requests from customers in Europe and Asia.

Zimbabwe’s neighbour South Africa saw an eight-fold increase in coal exports to Europe during the first half of 2022, after the European Union banned coal imports from Russia as part of sanctions for its invasion of Ukraine.

Coal prices had started rising even before the conflict as some European countries switched away from expensive natural gas to coal, despite global commitments to move away from the polluting mineral.

Contango owns 70% of the Lubu project in the coal-rich Hwange district. The company’s main focus is supplying its low-sulphur coking coal to the southern African ferro alloy and industrial markets, but it has found current prices of thermal coal – used in electricity generation – attractive.

The company said it had received “unsolicited approaches” for thermal coal from buyers, ranging from trading houses to industrial consumers, in Africa, Europe and Asia.

“Fuelled by the dramatic rise in thermal coal prices over the past 12 months … the board are now considering a coking and thermal operation, delivering 10 000 tonnes of coking coal and 10 000 tonnes of thermal coal per month based on current capacity in H1 2023,” Contango said in a statement.

Contango, which plans to increase its annual output to 300 000 tonnes by the end of 2023, said it had recently raised 7.5 million pounds (US$9 million) through a private placement to fund its operations.- NewZWire

(194 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024