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Zimbabwe coal reserves source of growth for newcomers to the mining industry

coal mining in zim

This is according to a Global Business Reports interview with Venmyn Deloitte MD Andy Clay and Executive Lead Godknows Njowa, who discussed success stories in the coal mining industry.

“Venmyn Deloitte has seen great success for a client in the Hwange area who is mining coal,” stated Njowa.

“The project started in 2010 and the company had less than 18 months to start the mining operation.”

“Within eight or ten months they started producing coal and today they supply approximately 50% of the country’s coal needs for power from that mine.”

Njowa and Clay highlighted how the coal sector in the country is likely to be stimulated by Independent Power Producers which have been issued with licences.

“There are a vast number of coal resources in the country suitable for power generation and these new IPP licences that were issued would facilitated the opening of new mines in the country,” said Njowa.

He is optimistic that the mining industry, given the necessary capital requirements, will become a significant contributor to the Gross Domestic Product (GDP).

Njowa will be presenting a talk entitled “A perspective on attracting the right investment for mining companies in Zimbabwe” at a Zimbabwe Chamber of Mines annual general meeting from the 23rd May to the 25th May 2013.

Among the discussion points that he will tackle are:

  • Principles of mineral asset valuation and the valuation of mineral assets in relation to the Zimbabwean mining industry
  • Challenges in the mining industry in Zimbabwe, including the lack of exploration
  • Limited mineral resources that are compliant with international mineral resource standards
  • Significant requirements for capital expenditure, on-going replacement capital or stay in business capital; and indigenisation
  • Requirements to attract potential investments and
  • Innovative funding structures

To find out more about how Venmyn Deloitte can assist with projects in Zimbabwe, contact Godknows Njowa at gnjowa@deloitte.co.za

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David Graham

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