The government of Zimbabwe has initiated a review of Exclusive Prospecting Orders (EPOs) granted to investors three years ago for coal-bed methane exploration to evaluate their commitment to these projects.
Holders of EPOs enjoy exclusive rights to explore and potentially extract minerals within designated areas, which prevents other entities from engaging in similar activities.
EPOs are typically granted for a specific duration and may be renewed based on the holder’s adherence to regulatory requirements.
In 2021, the government issued five EPOs to investors interested in coal-bed methane, including Alabara Resources, Sakunda Energy, Tumagole of South Africa, Zambezi Gas, and Shangani Energy Exploration.
In an interview with The Herald on Friday, Mines and Mining Development Deputy Minister Polite Kambamura said that various factors would be considered when evaluating the approval or rejection of an EPO. He said:
So, we will be looking at all those issues (such as) do (holders) have the capacity? Have they done similar work elsewhere? Do they work in other EPOs in the country because we do not want people to just hold for speculation.
Methane is extensively utilised as a fuel for heating and electricity generation, as well as a raw material in the production of various chemicals, such as ammonia for fertilizers.
Zimbabwe is believed to have significant reserves of untapped coal-bed methane (CBM), particularly in the Matabeleland North region.
The Lupane and Hwange districts are estimated to contain over 800 million cubic meters of CBM per square kilometre.
Moreover, additional studies indicate that Zimbabwe may possess more than 40 trillion cubic feet of potentially recoverable gas in the Lubimbi area of Lupane. This untapped resource presents substantial opportunities for energy development in the country.
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