President Mnangagwa vindicated on coal…as the British express interest in buying from Zimbabwe

President Mnangagwa vindicated on coal…as the British express interest in buying from Zimbabwe

Pretty Manyewe and Nevanji Munyaradzi Chiondegwa

President Mnangagwa`s decision to stand up to world leaders at last year`s Cop26, declaring that Zimbabwe will not be in a rush to abandon use of coal, as it remains a critical resource in the country`s development plan.
A few months later, the Russia-Ukraine conflict ensued and an energy crisis hit Europe, after Russia placed strict conditions for those seeking to access their gas.
Among those affected are the British and they have started thinking around using coal to meet their energy needs.
It has emerged that British energy users seek off-take agreements to purchase coal from a project in Zimbabwe according to the Contango Mining Company.
An energy offtake agreement is an arrangement between the project company and the party buying the energy and related products that the project will produce and deliver over time.
These arrangements traditionally have been through customized PPAs with terms ranging from 20 to 25 years
The coal mining company Contango, listed on the London Stock Exchange has a 70% interest in the Lubu coal project in north-western Zimbabwe, is getting off-take proposals from industrial users, including from the UK, executive director Carl Esprey revealed to The African Report recently.
Lubu covers 19 236 hectares of the highly prospective Karroo Mid Zambezi coal basin, located in the Hwange mining district in north-western Zimbabwe.
Contango has a 70% interest in the Lubu Coal Project (“Lubu”) in Zimbabwe, with the remaining 30% held by supportive local partners.
“Record gas prices are depressing global demand and causing users to switch to coal, while sharp cuts in Russian gas flows to Europe are raising alarms about supplies ahead of the winter, “said the International Energy Agency on 5 July.
Commenting on the issue, a lot of Zimbabweans have proposed this be grounds for total unconditional removal of sanctions imposed by the West on Zimbabwe.