HWANGE---The government has barred a private company from mining coal, giving the state owned Hwange Colliery Company (HCCL) a monopoly. Last week Mines and Mining Development Minister Obert Mpofu stopped Zambesi Gas Company from mining coal in Entuba coalfields in Matabeleland North saying it should seek approval from his ministry.Zambesi Gas Company was granted a special permit to prospect for coal- bed methane gas in 2004 by former Mines Minister Amos Midzi.
However ,Mpofu said the special dispensation was not a valid permit and the company should wait for proper government approval to start operations.?”An application does not give you permission to start operations. It’s a lengthy process that must be undertaken,” Mpofu told Zambesi Gas Company site geologist Constance Reid during his tour of Entuba coal fields.
Meanwhile, Mpofu said that Hwange Colliery Company would be given the Western Area Concession which was recently repossessed from power utility Zimbabwe Electricity Supply Authority (ZESA).?In July the government also refused ZESA permission to mine coal saying that ZESA should concentrate on power generation only.ZESA had planned to venture into coal mining to reduce load shedding . Coal shortages have resulted in subdued electricity supplies with industry and households in the country experiencing frequent power cuts.
Mpofu said while there was a process involved in giving concessions which must be approved by the President, his ministry would look favourably at an application from ZESA.
Post published in: Economy