- Coal Gasification Could Unlock New Value for Zimbabwe, But Demand Remains Key Hurdle
Zimbabwe’s coal sector holds significant potential for downstream value addition, including advanced processes like coal gasification and coal-to-liquid fuel conversion, but insufficient domestic demand remains the primary obstacle to large-scale beneficiation investment, the Chamber of Mines has revealed.
By Rudairo Mapuranga
Speaking at a workshop on energy minerals co-hosted by ActionAid Zimbabwe and the Parliament of Zimbabwe, Chamber of Mines Economic Policy and Investment Promotion Manager David Matyanga outlined the full spectrum of coal beneficiation opportunities available to Zimbabwe, from basic washing to complex chemical conversion.
Members of the Parliamentary Portfolio Committee on Mines and Mining Development were in attendance. Matyanga began by explaining that coal is the foundational product from which all other beneficiation flows.
“The basic sellable product of any mining organisation is coal. From coal, we then move on to any other product above that. The coal sector has a wide range of options for beneficiation,” he said.
He explained that thermal coal, used for power generation and industrial heating, is the most basic product, extracted directly from the pit with minimal processing.
“Thermal coal is a product that cannot be beneficiated in any other way. It is from the pit to the processing plant.”
The first stage of beneficiation involves washing, which removes ash and other impurities from the raw coal.
“There are various processes that are undertaken to increase the value of the product, starting with washing, removing ash and other impurities within that product. Once the product is washed, then various off-takers can pick that up for various applications.”
These applications include industrial boilers for steam production, laundry operations, and heating systems across manufacturing sectors.
Matyanga explained that coal is naturally ranked into different grades, with the highest quality found at the base of coal seams.
“Coal, by its nature, is ranked into various grades. At the very top is thermal coal; at the base of the coal seams is your coking coal.”
Coking coal undergoes processing through coke batteries to produce coke, which is essential for:
• Ferrochrome production
• Iron and steel manufacturing
• Other industrial applications
The coke manufacturing process itself yields valuable chemical by-products that feed into other industries.
“From the coke manufacturing process, you get a lot of other by-products, such as steam. You also get to produce chemicals such as toluene, tar, benzene, and others, which feed into the chemical sector.”
This creates opportunities for linkages between the mining and chemical industries, adding further value within Zimbabwe.
Matyanga highlighted the most advanced beneficiation options: coal gasification and coal liquefaction, processes that convert coal into synthetic fuels and chemicals.
“There are options for coal gasification and coal electrification, and those processes produce diesel from coal. A typical plant is one that is there in South Africa, which converts coal into diesel.”
He was referring to Sasol’s world-renowned coal-to-liquid (CTL) facility in Secunda, which has operated for decades, converting low-grade coal into high-value liquid fuels.
However, Matyanga was clear that the primary barrier to such investment in Zimbabwe is insufficient domestic demand.
“The basic requirement, as you indicated, is demand. You do not have sufficient demand to warrant the investment in a plant that manufactures those products.”
This is a critical point: coal-to-liquid plants require massive capital investment and operate most efficiently at enormous scale. Without a guaranteed offtake for the products—both liquid fuels and chemicals—such projects cannot achieve the returns investors require.
Matyanga revealed that a detailed assessment of Zimbabwe’s coal gasification potential has already been conducted.
“However, a study was done by a German company, which indicated that coal gasification and coal electrification are possible. That document is with the metallurgy department. I think we can actually look it up and see whether it is something that is worth investing in.”
The existence of this study suggests that the technical viability of coal gasification in Zimbabwe has already been established. What remains is an economic assessment of whether the investment case can be made given current demand projections.
For Zimbabwe, which holds significant coal reserves in the Hwange and other coalfields, the question of coal beneficiation is strategic. The country currently exports substantial quantities of raw coal and coke to regional markets, particularly to the Democratic Republic of Congo, Mozambique, South Africa, Zambia, and Botswana.
Moving up the value chain to produce liquid fuels and chemicals would require:
- A clear assessment of domestic and regional demand for these products
- A supportive fiscal framework for large-scale capital investment
- Anchor investors willing to commit to multi-billion-dollar projects
- Infrastructure to support such operations, including power, water, and transport
Matyanga’s remarks suggest that the technical groundwork has been laid. The German study sits with the metallurgy department, awaiting the right policy and market conditions to be dusted off and implemented.
For Zimbabwe, the question is not whether coal beneficiation is possible—it is. The question is whether the country can create the conditions that make the investment worthwhile. That requires understanding demand, engaging potential off-takers, and ensuring that the fiscal and regulatory environment can support projects of the scale required.
As Matyanga noted, South Africa’s Sasol provides proof of concept. Zimbabwe must now decide whether to follow that path and, if so, what it needs to do to make it viable.
