Zambezi Gas, a Zimbabwean company with ambitions to exploit coal bed methane (CBM) on concessions west of the country, will only seek a renewal of its special gas licence after it secures funding and requisite technical skills to launch a successful operation.

 

Thomas Nherera, the chief executive officer of Zambezi Gas told NGW November 7 that the company's special gas licence for its 19,000 hectare Ethuba concession expired in 2006: "Our gas licence is not current and we are not doing anything on gas."  

 

"We are not in a hurry to apply for its extension.  For now we are concentrating on coal mining.  We have a local market and are exporting to Zambia and the Democratic Republic of Congo.  Even if we apply and get the licence we don't have the skills, enough gas-engineered skills, in the country.  This is a completely new area for the country and we do not have the skills to be able to run a CBM operation."    

 

Zambezi Gas is one of the several companies keen to exploit Zimbabwe's CBM potential in western Matabeleland North Province. But lack of funding has stymied progress. 

 

Shangani Energy Exploration had its special grant extended in August 2017 for three more years.  Jointly owned by the Zimbabwe Mining and Smelting Company (Zimasco) and China's Sinosteel Corp. Shangani Energy Exploration is seeking $120 million to build a 400MW plant to power Zimasco's chrome smelting plants in central Zimbabwe.  

 

Another firm, London-listed Hwange Colliery Company Limited announced in its financials in September 2017 that it will pursue its CBM potential in Matabeleland North Province in the next few months.

 

"So when we have sufficient resources to hire the right people and to finance a successful CBM operation we will consider applying for a new special gas licence.  Since there is no relevant skills base locally we have to employ expatriates which is very expensive ," he said, without disclosing the budget for the exercises," he added.