Bloomberg reported that LontohCoal Ltd set to be the first African company to list in Hong Kong may double the size of its share sale to as much as USD 1 billion to develop a coal operation in Zimbabwe.

Mr Tshepo Kgadima Chief Executive Officer said the IPO proceeds will accelerate our ability to get into the construction phase. Sandton, South Africa based LontohCoal plans to list in the first half.

He added that “There will be follow-through financing either through a bond issue or by coming back to the market and issuing more equity.”

He also said LontohCoal Lubimbi operation will include a USD 5.5 billion coal to liquids plant a 1,200 kilometer slurry pipeline and a port in Mozambique. The port and pipeline may cost between USD 1.3 billion and USD 1.5 billion. The company may consider a joint venture partner for the pipeline.

Mr Kgadima said the Lubimbi project which is 51% owned by LontohCoal and the remainder by local shareholders will produce 46 million tonnes of thermal and coking coal a year. The conversion plant will be able to produce 50,000 barrels per day.

(Sourced from Bloomberg)