THE long-standing misunderstanding between Zambezi Gas and Makomo Resources, which saw the former being barred from transporting its coal passing through the latter’s concession, has been resolved.
Last month, President Mnangagwa during his tour of colliery firms in Matabeleland gave the two disputing companies an ultimatum to resolve their differences by end of July failure of which, he would intervene.
The two miners are critical suppliers of coal to Zimbabwe Power Company’s thermal power stations in Hwange.
In addition, Zambezi Gas and Makomo Resources have drawn expansion projects that are set to feed into Government’s 2023 strategy towards energy self-sufficiency and penetrating the export market.
Zambezi Gas director of administration Mr Thomas Nherera told Business Chronicle that their differences had been resolved.
“I have received communication from our team in Hwange that we are now being allowed to pass through Makomo Resources concession. Not using that route was proving costly on our part as we were using a longer route that is about 60km away from the power station,” he said.
During the President’s visit, Zambezi Gas and Coal Mine operations director Engineer Menard Makota told the Head of State and Government that they were being denied access to an “obvious route” and by that would see them travelling just 10 kilometres from their plant through Makomo Resources concession to deliver coal to Hwange Thermal Power Station.
In 2019, the two firms were at loggerheads over large swaths of coal claims, and the dispute has been resolved and awarded to Makomo Resources.
Through the growing coal and energy projects in Matabeleland North, Zimbabwe believes these would add impulsion to the re-industrialisation agenda with sweeping impact across the value chain of different economic sectors.
Power supply challenges have been one of the major constraints affecting local industries’ capacity to expand while foreign investors also pay attention to energy efficiency. _The Chronicle
