London listed natural resource development company Contango Holdings says the sinking of a shaft is underway at its Lubu Coking Coal Project while discussions continue with a potential long-term off-take partner.
Contango Holdings Executive Director Carl Esprey indicated that mining would only get underway once a consumer comes on board. He highlighted that talks are ongoing with a Zimbabwean subsidiary of one of the world’s largest stainless-steel producers, a Chinese industrial company.
He attributed some of the delays to the Covid-19 pandemic.
Contango Holdings has a 70% interest in the Lubu Coal Project in Hwange, with the remaining 30% held by supportive local partners. Lubu covers 19 236 hectares of the highly prospective Karroo Mid Zambezi coal basin, located in the Hwange mining district in north-western Zimbabwe.