Sable Mining Company to open $500m coal mine

Sable Mining Company to open $500m coal mine
Sable Mining company Exploration team
Published: 22 November 2013
LONDON listed coal and iron ore exploration and development company Sable Mining Company is set to roll out a new $500 million coal mine in Zimbabwe.

Sable is one of the 20 companies granted special grants to explore for coal and coal bed methane gas in 2010.

The new mine would be located in the Matabeleland North province.

Sable managing director Mr Rainor Robson said the company is gearing up for the task.

From the feasibility study Mr Robson pointed out that there is enough coal to sustain a very large mining venture.

"We are optimistic of producing between 12-15 million tonnes of coal per year in the first five years. The project is expected to cost $140 million in the first year of operating to be used on pre-stripping, open cast mining, engineering and infrastructure capital as well as indirect costs," said Mr Robson.

Sable's entry follows a call on the country's biggest coal producer Hwange Colliery Company Limited by the Government to revise its business model to maintain a competitive edge in the wake of the opening of new coal mines.

New mines including Makomo Resources, Chilota and Clidder have now entered the competition.

A few years ago reports indicated that HCCL coal reserves suitable for electricity generation from its dragline pits would be exhausted in a few years.

However access to long term loans from financiers HCCL needs reserves that can last more than 40 years.

Tags: Coal, Sable,


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