PACIFIC Goal Investments Private Limited (PGI), which forms part of the Pacific Goal Group — a Hong Kong-based industrial group with extensive mining and energy operations in Zimbabwe — has been officially registered as operator of the Muchesu coal project following approval by the Reserve Bank of Zimbabwe (RBZ).
The development marks a major milestone in the restructuring of one of Zimbabwe’s most strategically positioned coal assets, located in Matabeleland North Province, a region increasingly emerging as a critical hub in the country’s mining-to-energy value chain.
The Muchesu coal project, with a resource exceeding two billion tonnes, is viewed as a potentially transformative industrial anchor for Matabeleland North, with expected ripple effects on employment, infrastructure development and downstream industries such as power generation and mineral processing.
“Contango Holdings Plc, a company focused on unlocking value from the +2 billion tonne Muchesu coal project in Zimbabwe is pleased to advise the completion of registration with the Reserve Bank of Zimbabwe for the transfer of 51% ownership of Monaf Investments (Private) Limited from Contango to Pacific Goal Investments Private Limited. PGI have also now been registered as operator of the Project.”
According to the revised ownership structure of Monaf Investments (Private) Limited — the 100 percent owner of Muchesu — PGI now holds 51.0 percent, Contango retains 24.0 percent, Lilyone Investments has 6.5 percent, while local minority shareholders account for 18.5 percent.
PGI’s involvement brings significant industrial depth to the project.
“As previously reported, PGI forms part of the Pacific Goal Group, a Hong Kong based industrial group with extensive mining and energy operations in Zimbabwe, including a major mine-to-energy industrial park, incorporating two power stations, a graphite processing plant and a nickel smelter. PGI is co-owned by Mr Wencai Huo, the Company’s 20.42% shareholder, and Mr Liu Jun.”
Beyond ownership changes, the project is regarded as strategically important to both provincial and national economic objectives. Large-scale coal production in Matabeleland North is expected to support Zimbabwe’s drive toward energy security, reduce reliance on imported power and provide feedstock for thermal power generation, coal-to-energy projects and industrial processing.
The project also has the potential to stimulate local supply chains, contractor development and skills transfer, while boosting provincial revenue streams and strengthening Zimbabwe’s export earnings capacity.
Despite the shift in controlling ownership, Contango will continue to benefit from a long-term royalty structure.
“The Mineral Royalty Agreement (“MRA”) payable by Monaf to Contango remains in effect for the life of mine and includes a US$2 per tonne on thermal coal, US$4 per tonne on industrial coal and US$8 per tonne on coking coal production. A provision within the MRA also ensures a minimum payment to the Company of US$2,000,000 per annum,” the firm said.
In a further boost to Contango’s financial position, the company confirmed receipt of fresh funds from PGI.
The mining house indicated that it has received US$1,000,000 from PGI, marking the first payment received from PGI since it replaced Huo Investments last quarter as the proposed operator, 51 percent owner of Muchesu and provider of the US$20 million loan facility to the project.
Contango chief executive officer Daniel Dos Santos said: “I am pleased to confirm the registration of PGI as a 51% shareholder in Monaf and operator of the Project. In addition, we have also received US$1,000,000 as settlement of the outstanding liability from PGI as part of the variation of terms.
“The Company will provide a separate operational update shortly.”
In 2023, President Mnangagwa commissioned the vast mine.
Matabeleland North has vast mining activities that have been critical to the growth of the province and the country’s attainment of Vision 2030 for an upper middle-income society.
The province is the hub of coal-to-energy value chain investments, which will unlock up to US$1 billion under the coal and hydro-carbon focus.
The mining of coal at Machesu has started with 10 000 metric tonnes being produced each month. Production will be scaled up to 20 000 metric tonnes per month in 6 to 8 months’ time. A total of 20 households were successfully relocated to new houses.
Muchesu is a strategic coal asset in Southern Africa with over 2.6 billion tonnes of coking and thermal coal. It covers 19 236 hectares of the highly prospective Karroo mid-Zambezi coal basin, located in the established Hwange-Binga mining area in north-western Zimbabwe.
With its scale, industrial backing and integration into a broader mine-to-energy framework, the Muchesu project is increasingly seen as a potential catalyst for industrialisation in Matabeleland North and a contributor to Zimbabwe’s long-term economic growth trajectory.-herald
