Contango Holdings PLC - natural resource development company with operations in Africa - Confirms start of production at Lubu coking coal project in Zimbabwe, starting on Block 2.
Studies have defined an estimated 96 million tonnes of coking coal within the block, which forms part of the Lubu complex, wherein lies an estimated indicated and inferred resource of 1.25 billion tonnes.
Contango is targeting an initial stabilised mining rate of 5,000 tonnes per month.
"Bringing our first asset into production is a milestone event for Contango. I would like to thank our in-country team for their efforts in helping us accomplish this important achievement. The resource at Lubu is significant and we are now finally in a position to start to receive the economic benefits. Coking coal and coke have suffered from significant under-investment and mine closures in recent years and this, coupled with global infrastructure projects and transition towards green energy, have led to a significant uptick in the commodity prices of both coking call and coke," says Chief Executive Officer Carl Esprey.
Current stock price: 8.73 pence, down 2.5% on Wednesday
12-month change: up 14%
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Contango Hdg (CGO)