Alternative Investment Market-listed resource company Sable Mining Africa says it in the process of conducting an assessment study of its coal reserves with a view applying for an independent power’s producer licence in the country.
The company which recently acquired a 51% stake in Liberation Mining recorded pre-tax loss on continuing activities of $11,5 million for the year ended March 31.
In a statement accompanying its financial results, Sable Mining described Zimbabwe as a high quality coal mining region which benefits from established infrastructure.
“This infrastructure will facilitate the development of Sable Mining’s projects and offers the potential for the export of coal products to South Africa and beyond. In addition, in light of regional power shortages and the deregulation of power generation, Sable Mining has initiated a study to investigate the possibility of obtaining an Independent Power Producer licence in Zimbabwe,” the statement read.
A number of independent power producers were recently licensed with view to helping struggling power utility Zesa to increase power output. However of the licensed companies none has commenced generating power.
The resources company said it had made significant progress in building an extensive coal and iron ore portfolio across Southern, Central and Western Africa and progressing these projects up the value curve. Sable recently gained exposure to the country’s coal sector through the acquisition of significant interests in the Lubu coal project and the Lubimbi coal project.
Said Sable Mining CEO Andrew Groves: “Sable Mining has rapidly built a high quality multi-project portfolio spanning Zimbabwe, South Africa, Liberia, Sierra Leone and Guinea, with a focus on bulk commodities, primarily coal and iron ore.”
Lubimbi holds a 16 545-hectare special grant 4977 which covers the Lubimbi coal project in Gwayi.In a trading update in June, Sable Mining Africa said historical work had indicated an in situ coal tonnage in excess of one billion, which the company was aiming to exploit with the immediate implementation of an exploration and development programme.
As for the Lubimbi coal project with approximately 90% of the licence area remaining untested, the company believes that there is strong potential for the total tonnage of the entire area to be considerably increased.