Zimbabwe Invites CBM Exploration Bids
Zimbabwe's leading mining agency has, for the first time in about 20 years, officially invited bids for coal bed methane (CBM) exploration and development in the country's highly prospective north-western region.
Buoyed by substantial international goodwill created by a change of government in November 2017, state-owned Zimbabwe Mining Development Corporation (ZMDC) started accepting bids on February 1 and the process will end on February 23, said Luke Akino, its acting general manager. "We have a new dispensation in the country which has generated much positive vibes locally and abroad. We think the timing is therefore right," Akino told NGW.
Robert Mugabe, in office since 1980 first as prime minister then since 1987 as president, resigned in November 2017 after mass protests, a military operation against him and a threat of impeachment by parliament. His successor as president, Emmerson Mnangagwa has gone on a campaign to reopen the country for foreign investment by clamping down on corruption, amending laws that restricted foreign investment and re-engaging Western powers and multilateral financial institutions which have not lent any money to his country since the 1990s because of policy differences and a cumulative US$2 billion debt the country owes them.
While Zimbabwe is believed to have CBM in the south-eastern and north-western regions, the size of the reserves is unknown given the poor upstream investment. However, the government estimates that there are 1.13 trillion m3 of the resource.
Also keen to take advantage of the current spotlight on Zimbabwe, in its bid to attract suitors to develop its own CBM blocks, is Hwange Colliery Company Limited (HCCL).
The coal miner, listed on the London, Johannesburg and Zimbabwe stock exchanges has, from February 11 2018 been inviting tenders to partner it for CBM development on its 4,200-hectare Lubimbi East special grant in Hwange area that adjoins Binga and Lupane districts. HCCL wants partners to conduct CBM drilling and testing, full feasibility studies, funding and supply and installation of CBM processing facilities including electricity generation and liquid fuels production.
ZMDC, HCCL and two smaller companies have over the years failed to attract investors to fully explore, let alone develop, their CBM potentials but now Akino is hopeful.