Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
News
All NewsCompaniesIndexesCurrency / ForexCommoditiesCryptocurrenciesETFInterest RatesEconomyThemesSectors 

UK-listed Contango plans thermal coal exports from Zimbabwe in 2023

11/30/2022 | 09:35am EST

(Reuters) - London-listed Contango Holdings plans to start exporting thermal coal early next year from its Zimbabwe mine following requests from customers in Europe and Asia, the company said on Wednesday.

Zimbabwe's neighbour South Africa saw an eight-fold increase in coal exports to Europe during the first half of 2022, after the European Union banned coal imports from Russia as part of sanctions for its invasion of Ukraine.

Coal prices had started rising even before the conflict as some European countries switched away from expensive natural gas to coal, despite global commitments to move away from the polluting mineral.

Contango owns 70% of the Lubu project in western Zimbabwe's coal-rich Hwange district. The company's main focus is supplying its low-sulphur coking coal to the southern African ferro alloy and industrial markets, but it has found current prices of thermal coal - used in electricity generation - attractive.

The company said it had received "unsolicited approaches" for thermal coal from buyers, ranging from trading houses to industrial consumers, in Africa, Europe and Asia.

"Fuelled by the dramatic rise in thermal coal prices over the past 12 months ... the board are now considering a coking and thermal operation, delivering 10,000 tonnes of coking coal and 10,000 tonnes of thermal coal per month based on current capacity in H1 2023," Contango said in a statement.

Contango, which plans to increase its annual output to 300,000 tonnes by the end of 2023, said it had recently raised 7.5 million pounds ($9 million) through a private placement to fund its operations.

($1 = 0.8340 pounds)

(Reporting by Nelson Banya; Editing by Mark Potter)


ę Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
CONTANGO HOLDINGS PLC -0.88% 5.6 Delayed Quote.7.69%
DOW JONES AFRICA TITANS 50 INDEX -0.24% 479.42 Real-time Quote.4.86%
DOW JONES SOUTH AFRICA(ZAR) 0.02% 2121.62 Real-time Quote.8.00%
S&P AFRICA 40 INDEX -0.40% 158.89 Real-time Quote.4.70%
S&P GSCI NATURAL GAS INDEX 2.20% 115.2262 Real-time Quote.-45.12%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) 0.01% 70.58 Delayed Quote.-2.67%
Latest news "Economy"
12:53aNorth Korea ruling party meeting to address 'urgent' agricultural needs
RE
12:51aIndian Oil to sign MOU with LanzaJet for sustainable aviation fuel
RE
12:49aAsian spot LNG prices decline, but enough to tempt buyers?: Russell
RE
12:42aUpper house of india's parliament adjourned amid uproar as lawma…
RE
12:41aMarketmind: Hot air
RE
12:36aLower house of india's parliament adjourned amid uproar as lawma…
RE
12:34aUK new car registrations jump about 14% YoY in January
RE
12:33aIndia's Easy Trip Planners posts profit jump as booking hit record high
RE
12:32aOil prices edge higher as IEA's Birol talks up China demand outlook
RE
12:30aUk new car registrations up about 14% year-on-year in january -…
RE
Latest news "Economy"