Page 10 - AfrElec Week 36 2022

AfrElec COAL AfrElec

Contango reports better-than-

expected results after coal quality

tests at Lubu mine in Zimbabwe

ZIMBABWE LONDON-LISTED Contango Holdings Plc, into coke. Particularly encouraging was, among
which is developing a coal mine in western Zim- other factors, that the ash was well within accept-
babwe, has said ongoing testwork at the site has able ranges and the fixed carbon was above 80%.
shown potential for a high-quality product. Contango chief executive officer Carl Esprey
In an update on Tuesday (September 6), Con- said the coking coal and coke tests have reaf-
tango said Lubu mine construction and develop- firmed the attractive characteristics of Lubu.
ment are continuing and on track for completion “As followers of the company will be aware,
with its first coal sales seen in the next quarter. earlier this year we entered into an offtake with
As development work progresses, the compa- AtoZ Investments for 10,000t per month of
ny’s technical team is also undertaking testwork, washed coking coal, which we expect to deliver
which yielded better-than-expected results. first revenue to the company by the end of the
The tests were undertaken through a newly calendar year.
installed one-tonne per hour test plant located “Whilst we expect AtoZ’s ultimate demand to
onsite, supplied and supervised by OneVision, exceed this level, the company is also in dialogue
which is also installing the larger 100-tonne per with a number of additional potential buyers
hour throughput wash plant. An initial 60 tonnes of coking coal and coke, including prominent
have now been processed from the same horizon global industry players and leading commodity
Lubu is to be initially mined from. traders.
The processing has confirmed that, after “The latest results should only strengthen
passing through the wash plant, the coking coal our position to complete additional offtake(s)
product is of excellent quality. for both coking coal and coke production and
An additional test was undertaken on 15kg I look forward to providing additional updates.
of washed coking coal from both the NUTS and This is a truly exciting time for the Company as
PEAS sections. These were processed through a we look to complete full mine and processing
mini-coking test plant as a first determinant of construction ahead of first sales by year-end.”™
how the coking coal would react when processed

P10 www. NEWSBASE .com Week 36 08•September•2022