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Oliver Kazunga  Senior Business Reporter
MINING concern, Zambezi Gas targets to increase its coal output to 50,000 tonnes per month before the end of the year as it intensifies efforts to penetrate the regional export market.The firm is one of the companies that the government issued with special grants in 2007 to exploit coal fields in Matabeleland North province.

The firm began operations at its Entuba coalfields last November producing 25,000 tonnes of coal per month after sourcing mining equipment worth $5 million from China.

Zambezi Gas chief executive officer Thomas Nherera said they were in negotiations with the export market to supply coal to consumers in Zambia and South Africa.

“We’re currently producing 40,000 tonnes of coal per month and we’re targeting to increase our productivity to 50,000 tonnes per month as we explore the export markets.

“As our market grows, so do our production levels. We’re exploring the export market in South Africa and Zambia and hope by the end of the year we would’ve expanded our market base by penetrating the export market,” he told Chronicle Business.

At present, Zambezi Gas supplies coal to the local market in different sectors of the economy such as tobacco, brick manufacturing, cement manufacturers and foundries. Zambezi Gas has invested $12 million into its coal-mining project.

The firm was issued with a special grant in 2003 to explore methane gas at its 19,000 hectares concession at Entuba.

The project is still on hold due to funding challenges. The methane gas project requires at least $60 million.

Indigenous shareholders control 51 percent of Zambezi Gas, with the rest taken up by foreign investors.

Under the Indigenisation and Economic Empowerment Act, foreign-owned companies with a net turnover exceeding $500,000 are required to cede 51 percent shares to indigenous people.