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(HERALD) Lack of mining concessions hampers Lupane gas project

Lack of mining concessions hampers Lupane gas project
New Ziana.

Lack of mining concessions is hampering the Industrial Development Corporation from securing partners to mine methane gas in Lupane, an official said yesterday. IDC public relations advisor Mr Derek Sibanda told New Ziana that the company applied for the concessions to the Ministry of Mines and Mining Development a long time ago but was still awaiting response.

"The IDC requires gas concessions," he said. "We applied to the Ministry of Mines but we have not yet received a response."

Mr Sibanda said it was disheartening to note that while IDC was failing to attract equity partners to invest in the gas project, some individuals were holding on to mining concessions for speculative purposes.

He said the absence of a policy framework on methane gas was also hindering progress on the project, as partners did not have guarantees for their investment.

"Although a White Paper was done some years back, Government policy and a regulatory framework on methane gas is still outstanding," he said.

The IDC requires at least US$12 million to carry out exploratory work and ascertain the quantity of the reserves.

Potential investors were reluctant to commit their funds since they were not sure whether the gas reserves were mine-able.

"The situation is still the same," said Mr Sibanda. "We are still looking for an equity partner to inject the US$12 million to do the exploration to ascertain the amount of gas deposits."

Mr Sibanda said that although Government has granted the Lupane gas project national project status, it has not accorded it the requisite priority in allocation of financial resources to carry out exploration work.

At least five holes should be drilled to ascertain the extent of the gas reserves before full mining can commence.

The methane gas, from coal deposits, will be used to generate electricity while the residual material will be used to produce fertilizer.

Zimbabwe boasts the biggest methane gas deposits in East and Southern Africa.

The estimated reserves of 500 billion cubic metres in the Lupane area would provide energy equivalent to 560 tonnes of coal, which at current consumption levels, would last nearly 100 years. — New Ziana.

Labels: MINING, ZIMBABWE

posted by MrK @ 11:56 AM