The Lubu Coking Coal Project in Binga district, Matabeleland North province, which is being developed by London Alternative Investment (AIM) listed miner Contango Holdings, has started production.
The company, which produced its first washed coking coal on Tuesday, said the commencement of production was a landmark development.
The mine’s target is to produce 20 000 tonnes of washed coking coal a month. The coking coal project, which has now been renamed Muchesu Coal, covers 19 236 hectares of the highly prospective Karroo mid-Zambezi coal basin.
Contango Holdings’ mine joins many other new mines that have started production across the country, a confirmation that Zimbabwe is fast becoming an investment destination of choice in the region and beyond.
The coking coal- mining project was bought from Consolidated Growth Holdings that had spent more than US$20 million developing the mine.
Another new mine is Zulu Lithium Mine in Fort Rixon, Matabeleland South province which started production in April this year.
The lithium mine has probably the largest undeveloped lithium bearing pregmite in the country covering about 3,5km2.
The mine is already employing hundreds of locals and many more are set to be employed.
Many lithium mining projects are also taking shape across the country and very soon the country will be among the leading producers of lithium in the world at a time when lithium is the mineral of the moment due to production of electric cars.
Lithium is used to manufacture rechargeable batteries for electric vehicles, mobile phones, laptops and digital cameras.
The other lithium mines are Sabi Star Lithium Mine, Bikita Minerals, Arcadia Lithium Mine and Kamativi Lithium Mine.
The other new investors that have taken advantage of the country’s conducive investment environment are Tsingshan Holdings whose subsidiary Dinson Iron and Steel Company (Disco) is investing US$1 billion to set up an integrated Iron and Steel Plant near Mvuma and Intrachem Explosives Company which recently established a detonators plant in Kwekwe.
The new investors have commended Government for creating an enabling environment.
Government has resolved to use local resources to grow the economy despite the illegal sanctions imposed on the country by Western countries.
Guided by its development philosophy: Ilizwe lakhiwa ngabaninilo (Nyika inovakwa nevene vayo), Government is encouraging citizens to play a leading role in exploiting the country’s abundant natural resources to grow the economy and develop the country.