British Contango Holdings has received permission to export coal from Zimbabwe

AK&M 27 September 2023 14:33

Contango Holdings Plc, a British natural resources development company, has received permission from Minerals Marketing Corporation of Zimbabwe to export coal as part of the Muchesu project to Zimbabwe. This is reported in the Contango press release.

In accordance with the permit, Contango sold the first batch of coal to the company TransOre International FZE within the framework of the partnership agreement. 

TransOre plans to send additional coal transportation vehicles and use the existing coal export capacities in the ports of Maputo and Beira to increase international shipments of products to customers.

The agreement with TransOre will replace the non-exclusive contract with AtoZ Investments Ltd, signed in June 2023. The target price of the transaction is $120 per ton, which corresponds to the current price for coking coal set by Minerals Marketing Corporation of Zimbabwe.

The new contract will complement Contango's deal with an unnamed multinational corporation, which is currently undergoing due diligence. If the deal does not take place, Transcore will buy back the additional amount of coal that will become available.

Earlier, Contango raised 1.5 million pounds from interested parties to finance large-scale projects.

Contango Holdings plc is engaged in the development of mineral resources in Zimbabwe and Mali. The company owns a 70% stake in the Lubu Coal coal project in the Hwange mining area in northwestern Zimbabwe and assets in the Garalo-Ntiela gold project in Mali. The headquarters is located in London (England). 

TransOre is an international transportation company for the sale, processing, financing and transportation of raw materials from Africa to Europe, the Middle East and Asia.