Cabinet approves new Mat’land projects
CABINET has approved agreements for two new gold and coal-bed methane gas projects expected to add impetus to the attainment of the US$12 billion mining industry by 2023.
The Ministry of Mines and Mining Development has proposed agreements for a gold mining concession project in Fort Rixon, Matabeleland South, between the Government and a private company, Bravura Zimbabwe (Pvt) Ltd.
Another agreement also involves Government and Jacqueline Resources (Pvt) Ltd concerning the exploration and development of coal-bed methane fields in Matabeleland North Province.
The Government granted coal-bed methane (CBM) special grants to six investors in Matabeleland North Province last year as the country seeks to tap into cleaner fuel for electricity generation.
Among the companies that have been granted CBM concessions are Jacqueline Resources, which is an Australian-headquartered firm, Tumagole of South Africa, a local company, Sakunda Holdings, and Shangani Energy Exploration (SEE), which is owned by Chinese steel giant, Sinosteel.
In a post-Cabinet briefing on Tuesday, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said: “The Minister of Mines and Mining Development Winston Chitando, presented the following proposed agreements to unlock value in the mining sector, gold mining concession between the Republic of Zimbabwe and Bravura Zimbabwe (Pvt) Ltd; and a Memorandum of Understanding between the Republic of Zimbabwe and Jacqueline Resources (Pvt) Ltd concerning the exploration and development of Coal Bed Methane (CBM) Fields.”
She said Cabinet approved both agreements that are part of the Second Republic’s initiatives towards achievement of a US$12 billion mining industry.
Under the US$12 billion mining roadmap, gold is expected to contribute US$4 billion, platinum US$3 billion while chrome, iron, steel, diamonds and coal will contribute US$1 billion.
Lithium is expected to contribute US$500 million while other minerals will contribute US$1,5 billion.
“The Bravura agreement will see the State granting a concession in the Fort Rixon area to Bravura. Bravura is a highly technical company, which will bring in specialised equipment for airborne geophysical surveys using radiometric, magnetic, electromagnetic, geo-radar among other methods to allow an optimal evaluation of mineral resources,” said Minister Mutsvangwa.
On its part, Bravura is expected to carry out exploration, exploitation and processing of gold and allied minerals in the Fort Rixon concession.
It is hoped that production from the concession will be shared in accordance with terms to be set in the operating agreement yet to be signed, which would be by production sharing in the proportion of 80 percent for Bravura and 20 percent to the State.
“An Operating Committee will also be set up for the development and exploitation programme, whose composition shall be defined in the Operating Agreement,” she said.
On the proposed coal-bed methane project by Jacqueline Resources, Minister Mutsvangwa said the MoU will establish a formal and binding relationship between the two parties for collaboration in the exploration and development of CBM in Zimbabwe.
Jacqueline Resources (Pvt) Ltd is an Australian company registered in terms of the laws of Zimbabwe and has extensive experience in the exploitation and development of CBM fields as well as immense capacity to mobilise funding to undertake exploration and development activities, including the management of proactive projects.
“The MoU will result in the signing of a joint venture agreement between the parties covering, inter-alia, the following areas: the participating interests of the parties in the joint venture; profit sharing; appointment of key project personnel; and ownership of the project intellectual property rights of the Parties,” she said.
The joint venture project and production licence would run for 20 years with an option for renewal upon expiry of the period.
“A management committee comprising equal representation from both parties shall be established to oversee the finalisation of the exploration programme, the grant of title in respect of the project area, and the negotiation and execution of the joint venture agreement,” said Minister Mutsvangwa.
Zimbabwe is said to have huge deposits of untapped coal bed methane gas in the Hwange, Lupane and Gwayi areas, but their commercial viability has not yet been supported by geological information.
Over the years, drilling and desorption tests have been conducted and resources that run into trillions of cubic feet have been discovered.
The country is in the initial production testing of CBM with a view of generating power. In addition to power generation, an integrated petrochemical industry can be established with potential to attract offshore capital and create employment. —chronicle.co.zw
