ZIMBABWE Key Natural Resources that develop Nations Steel Cement Copper Water Fuel Oil, coal , gas (Natural and Coal Gas) COAL AND GAS Zambezi, Limpopo and Save Basins carry coal and gas deposits. The level and quality of resources vary. OVERLYING SOIL POWER COAL INDUSTRY COAL COKING COAL 5 Hwange Basin – Coking Coal, Power Coal, Industry Coal Gokwe Basin – Power Coal, Industry Coal Limpopo Basin – Coking Coal?, Power Coal, Industry Coal Save Basin – Power Coal, Industry Coal CHALLENGES OF NATIONAL COAL RESOURCE High Sulphur and Phosphorous levels High Ash Local Infrastructure poor Environmental concerns Definition of coal and Coal grades(National Policy) Limited Local market Zimbabwe has no port Facilities allocation. Distance to Port 1500 – 2500KM. Cost of rail +-5c per km per tonne vs Asia/Europe at +- 1,5c per km per tonne. Building of Power Plants ($1m = 1 MW rule of thumb) Social heating (use of discarded coal fines— fight deforestation) Centralised Industrial Steam Parks(Industrial Efficiency) Tobacco curing—special win-win pricing FUEL FROM COAL (National Costs Modeling Key)----SA and Botswana experience. Coal Exports (critical alignment with Offshore metallurgical plants parameters a pre-requisite) More Power Plants South Africa’s Eskom is running out of coal because Government gave nearly all Coal Concessions to Private Players who now choose to export for better prices. Coal exports are achieved by a Nation not individual Companies. So, a National Coal Brand centrally marketed is a must if the Nation has to enter World Coal Markets. By product of the formation of coal. Sits deep in the ground trapped by large water bodies. Extraction is a highly technical endeavor. There is need for a National Gas Policy. Gas found in coal basins Ground must be less physically disturbed. Hwange coal basin has huge potential, one of the best in the region. A Company is currently applying for a Production License. • Gas yield Tests (Desorption): Lubimbi BH “A” (Hwange Colliery): 5m3/ton at 450m BH “B” (Hwange Colliery): 1m3/ton at 250m Luseche Figures not available (Shangani Energy) at 835m Entuba BH “A” (Hwange Colliery): 4m3/ton at 410m • Gas Yield Tests Half way House (measured in billion cubic feet/square mile): BH-C3 (Shangani Energy): 35bcf/mi2 BH-C4 (Shangani Energy): 51bcf/mi2 Gwayi Here gas resource was estimated at 50billion cubic meters over 177 km2 of the area. Total 6 TCF = 2 000MW for 50 years 15 CHALLENGES No infrastructure (storage and transport) No Policy (mineral, fuel, chemical—Inter Ministerial Issue) Technological knowhow low Accelerated exploration and development programme can lead to creation of “Load Management” Power generation Plants as well as cheap (cost) fertilizers and chemicals. Cost +- $20m LONGTERM Its key to create a National and Regional Industry outside Power Generation e.g. adopt motor vehicle engines that use CNG (Brazil).Incentivise new Industry designed for use of Gas away from Electricity, Coal and Oil. 1989 Mobil Oil Study Abandoned 1993 due to no National Policy on Gas EDUCATED ESTIMATES Cabora bassa basin 560 TCM Mana Pools Basin 27.5 TCM Mid Zambezi Basin 27 TCM Mid/Longterm National Strategy is needed. 18 THANK YOU 19