Hwange seeks coal-bed methane partners

BULAWAYO - Hwange Colliery Company Limited (HCCL) has indicated its interest to venture into coal-bed methane production in Lubimbi in Matabeleland North.

The move is being touted  as the coal miner’s diversification strategy.

This was revealed in a tender notice published yesterday where HCC sought partnership with interested bidders with technical and financial capacity to carry out exploration and drilling coal and coal-bed methane activities.

“The company now wishes to diversify its business by venturing into coal-bed methane production,” reads the notice.

“Tenders are invited from suitably qualified and interested bidder with technical and financial capacity to carry out exploration and drilling activities in Lubimbi (special grants 4 364 and 4 764) measuring areas of 4 200ha and 10 995 ha respectively.”

The coal mining giant said it requires bidders to delineate coal-bed methane and coal resources and reserves.

“For coal, bidders are required to produce a SAMREC compliant coal resource and reserve statement; for coal-bed methane, bidders are required to produce a coal-bed methane resource statement that is compliant to an internationally recognised code of practice for coal-bed methane.”

HCCL said it seeks to use the coal-bed methane, coal resource and reserve statement for capital raising.

“As such bidders should ensure that all provisions as per SAMREC code for coal and an internationally recognised code of practice guidelines for coal-bed methane are adhered to,” HCCL said.

The company said the whole scope of the business opportunity will also be given to interested bidders on request, adding that it was also prepared to organise a site visit to interested bidders before submission of tender.

HCCL is a public company listed on the Zimbabwe, Johannesburg and London stock exchange and is the largest operator in the business of exploring, mining, processing and marketing of coal, coke and related products.

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