Under corporate rescue Makomo Resources, is setting its sights on underground mining operations as it pivots towards the production of coking coal, which has seen a surge in demand, Mining Zimbabwe reports.
By Rudairo Mapuranga
According to a report from the Ministry of Mines and Mining Development conducted in August 2024, the company is already in the planning stages of its underground mining project, aiming to selectively mine coking coal. This strategic move comes as the market for thermal and industrial coal remains weak, leading to the spontaneous combustion of stockpiled coal due to low uptake.
Makomo, currently under corporate rescue, engaged South Mining as a contractor for a two-year period starting in March 2023. This partnership has provided some financial relief, enabling the company to expand its mining operations. However, challenges persist, as Makomo continues to struggle with finding buyers for its thermal coal, a situation that has prompted its shift towards coking coal mining.
Projected production for 2024 was 3.6 million tonnes of coal, but the company is prioritizing the high-demand coking coal. Plans to establish its own underground mining operations aim to increase the production of this valuable resource. Additionally, Makomo is considering setting up its own power station to boost the uptake of thermal coal, which would simultaneously expose the coking coal seams below. This initiative could help address the issue of stockpiled thermal coal, which currently risks spontaneous combustion due to market stagnation.
Looking ahead, the company has recommended lifting the ban on thermal coal exports, a move that could allow access to new markets and reduce the accumulation of unsold coal. This strategy would provide Makomo with a much-needed revenue stream while it transitions to coking coal production through its planned underground mining operations.
