Contango Holdings satisfied with mine development

London listed miner, Contango Holdings, which is exploring Lubu coal resources in Hwange, says in the financial year ending November 2022, the company made huge strides towards making its first coal and coke sale.

According to the company, metallurgical coal and coke tests undertaken through installed 1 tonne per hectare test plant confirmed the excellent quality of coal from Lubu further strengthening Contango’s position to complete additional offtake agreements.

Carl Esprey, chief executive of Contango Holdings, said; “We expect Contango to transition into cash flow towards the end of the current quarter with first sales of coking coal. Lubu’s advancement over recent months has been facilitated by the successful £7,5 million fundraising during the period, which has enabled investment in building mining and processing operations.”

Expansion of production strategy to include both thermal coal and coke development scenarios to provide additional near-term high value revenues streams were undertaken in the period under review.

Esprey added; “These development initiatives are now reaching their conclusion, with the wash plant now at site and being assembled ahead of commissioning.

“Once calibrated and operating efficiently the wash plant is expected to be able to produce 20 000 t of washed coking coal per month which will satisfy its first offtake partner, A to Z Investments, and also provide sufficient supply to secure further offtakes for our coking coal.”

Contango’s operating subsidiary was declared the winner of the 2022 Excellence in Community, Empowerment and Social Impact Award recognising its work at Lubu.

The chief executive said he reiterate his excitement and enthusiasm for what is in store for Contango over the coming weeks and months and they transition into a fully-fledged and cash generative production company.-ebusinessweekly