Commissioning of Binga Coal Mine Plant moved to July 31
Contango Holdings has announced the postponement of the commissioning of its coal mine plant in Binga. The formal opening ceremony, originally scheduled for this week and to be commissioned by President Mnangagwa, has been rescheduled to July 31 due to unforeseen circumstances. However, the delay will not affect the company’s operations, as production is already underway.
Contango has recently started production and is considered to be a transformative development in the region. The coal mine is expected to have a positive impact on job creation, community development, and downstream industries.
In a statement, Contango Holdings confirmed the new commissioning date and expressed its commitment to proceeding with its plans. The company also announced a new offtake arrangement with TransOre International FZE, a UAE-based entity managing global commodity supply chains. This new contract will replace the previous agreement with AtoZ Investments (Pty) Ltd and is priced at US$120 per tonne of washed coking coal.
Once steady production is achieved in the third quarter of the year, Contango Holdings expects its operating costs to be around US$45 per tonne of washed coal. The company is also exploring additional options to further reduce these costs and expects economies of scale with larger volumes.
The mining firm has been rapidly assembling machinery in recent months, facilitated by a successful £7.5 million fundraising in October last year. The coal mine plays a crucial role in the government’s plan to grow the mining industry into a US$12 billion industry by 2023, which aligns with Zimbabwe’s broader vision of becoming an upper-middle-income country by 2030.
The project is expected to create employment opportunities for locals, both directly within the mine and within downstream industries. Contango Holdings remains optimistic about the success of the coal mine and its contribution to the region’s economy.