85 companies seek coal-mining licences in Mat North

24 May, 2015 - 00:05 0 Views
85 companies seek coal-mining licences in Mat North Minister Walter Chidhakwa

The Sunday News

chidhakwaGabriel Masvora Business Editor
AT least 85 companies have applied to the Ministry of Mines and Mining Development for coal-mining licences in the rich belt of Hwange in Matabeleland North, a Cabinet official has revealed.Mines and Mining Development Minister Walter Chidhakwa told delegates attending the Chamber of Mines conference in Victoria Falls on Friday that his ministry was considering the applications but it was impossible to grant licences to such a large number of companies to operate in the area.

“Do you really think it is possible that 85 companies can operate in Matabeleland North. We used to have one company Hwange Colliery and we added a few but definitely we can’t allow such a number,” he said.

Minister Chidhakwa, however, said his ministry was also seized with how to look at the application system as the companies were made to pay between $100 000 and $500 000.

“I think what we need to look at is how we can refund some of these companies if they are not granted the licences.”

The Government has previously expressed worry over companies that were granted concessions in the Hwange area a few years ago but have failed to develop them.

At one time Government threatened to withdraw the licences from the companies.

Minister Chidhakwa also said coal mines must play a major role in resuscitating ailing National Railways of Zimbabwe.

“As the mining sector we cannot allow NRZ to die. We know that we need to move our products in bulk. You can approach banks and seek money for NRZ. Just sit down and do a cost analysis. Tell the bank how much you think you will produce in terms of tonnage, how much it will cost and expected income and I am sure most financial institutions are ready to help.”

Coal is one of the major minerals in the country.

According to the Chamber of Mines figures, coal production increased by 27,5 percent last year to 6,35 million tonnes pushed by two of the country’s main miners Hwange Colliery and Makomo Resources.

On gold Minister Chidhakwa said the country had the potential to produce more than 20 tonnes because of improved collection, especially from the small-scale miners.

The Government has formed an 82-member Gold Mobilisation Committee which is going around monitoring the marketing of the mineral to ensure that it is sold to Fidelity Printers and Refineries.

He said from the amount small scale miners were producing they had the potential to produce a tonne each month.

“In January they were producing 300 kilogrammes. It is now at 600 kgs and it shows they can reach a tonne per month which translates to 12 tonnes per year. If we add the 10 tonnes which our big corporates are producing, it means we can get up to 22 tonnes in a year.”

Gold production last year stood at 15,3 tonnes, an increase from 14 tonnes recorded in 2013.

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