CONTANGO Holdings Plc’s Muchesu coal project in north-western Zimbabwe is gaining operational momentum after the Reserve Bank of Zimbabwe formally registered Pacific Goal Investments Private Limited (PGI) as the majority shareholder and mine operator.
The move follows a restructuring of a July 2024 deal, in which Huo Investments (Pvt) Limited had agreed to acquire a controlling stake in Monaf Investments (Pvt) Limited — the entity holding the Muchesu mining licence — and invest up to US$20 million to expand production and upgrade infrastructure.
Huo later transferred its rights and obligations, including the US$20 million facility, to PGI, which now holds 51% of Monaf and manages operations. Contango retains a 24% stake, while other shareholders hold the remainder.
The registration signals a significant step in aligning Muchesu with a committed in-country operator, safeguarding Contango’s royalty earnings of at least US$2 million per year, and supporting ongoing capital investment — including new coke oven installations to expand metallurgical coal processing.
“The board views these changes as an important step in aligning the project with a committed operator that has a meaningful in-country footprint, while preserving the company’s royalty and debt-repayment economics,” Contango chairperson Gordon Thompson said in a statement attached to the company’s interim results for the six months to November 30, 2025.
Spanning 19 236 hectares in the Karroo Mid-Zambezi coal basin of the Hwange mining district, Muchesu is positioned for growth under PGI’s stewardship, while Contango continues to benefit from royalties and strategic alignment through Huo’s 20,42% shareholding in the firm.
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“We view this as an important evolution in the partnership structure, introducing a group with an established operational footprint in Zimbabwe that is complementary to the long-term development of Muchesu,” said Contango chief executive officer Daniel Dos Santos.
Contango is a British-based natural resources firm.