UK investment company Contango says it is in talks with two buyers for off-take agreements for coal products from its newly acquired Lubu coalfield in Hwange which started trading on the London Stock Exchange in June after completing the acquisition of Consolidation Growth Holdings’ interest Lubu.
Supply deals with CoalZim Marketing and South Mining would allow Contango to start production within six months, says Carl Esprey, Executive Director of Contango.
Contango now has a 70% interest in the Lubu project, which has had more than 12 000 m of drilling completed and which it says has a total resource of more than one-billion tonnes of coal.
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