The Financial Gazette reported that London listed Kazakh miner Eurasian Natural Resources Corporation is scouting Zimbabwe for coal assets.
Sources said that ENRC, which has plans to expand its reach in Africa as part of a strategy to dilute its exposure to the steel industry, was looking at potential acquisitions in the coal mining sector. ENRC already holds platinum claims in Zimbabwe acquired through its acquisition of Central African Mining & Exploration Company. Camec held the Bougai claim, which it had controversially acquired after a USD 100 million loan the company extended to the government through the Zimbabwe Mining Development Corporation.
Work on the feasibility study for its 60% owned subsidiary Todal Mining platinum mining claims, which it jointly owns with the ZMDC, was expected to have been completed in June 2009 after which a decision on whether to commission mine construction should have been made.
Stage one mining, which would take place within an area of 2.5 kilometers by 4.5 kilometers, will support a 20 year mine operation, producing an estimated 140,000 tonnes per month of platinum group metal ore.
The 4,500 hectares of platinum claims, located within the Selukwe sub chamber on the southern extent of Zimbabwe's Great Dyke, has already undergone Phase 1 and Phase 2 drilling, totaling 54 holes. But not much has been done ever since ENRC's take over of the JV project from Camec, with sources indicating that the platinum project was currently on hold.
However, the sources indicated that ENRC's plans for the acquisition of coal assets were advancing, hinting that the Kazakh miner was expected to partner the ZMDC or any other domestic mining company in its current pursuit.
Zimbabwe has abundant coal deposits but these require significant capitalization. Although demand for coal had stuttered due to the increasing dependence on oil and gas for transport and other industrial processes, coal appears to be making a significant comeback particularly in heavy industries.
Hydro power generators are being viewed as likely to become increasingly prone to droughts particularly in the southern African region, resulting in new power generation projects focusing largely on coal dependent thermal power plants.
Some industry players have said that if fully developed, this coal resource would make the southern African region a coal mining hot spot, similar to the copper mining hot spot of central Africa.
A number of foreign investors have recently targeted coal assets in the country. Sable Mining recently acquired an 80% interest in Monaf Investments, which holds the Lubu coal concession in the Bulawayo mining district.
The concession was originally explored by Messina Transvaal Development Services, which estimated that the area had an inferred resource of 334 million tonnes of low sulphur coal. Sable said that the portion of Lubu for which the resources have been calculated hold the potential for opencast mining.
(Sourced from www.financialgazette.co.zw)
