News / National
Lupane methane gas project stuck on paper
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The long-awaited Lupane methane gas project is facing delays as investors have reportedly expressed dissatisfaction with the terms and conditions set by the government, preventing the initiative from moving forward.
Michael Montana, environmental consultant for CEWALE Discovery Investment, revealed in an interview yesterday that the Russian investors behind the project are reluctant to proceed due to unresolved issues with the government's proposals. Montana explained that although the investors have received the letter they were waiting for, the terms outlined within it have not aligned with their expectations, causing a significant setback.
"I think they [Russian investors] now have the letter they were waiting for, I last spoke with them two to three months back," Montana said. "It seems the investors are delaying to come and kickstart the project because of the terms in the letter they were waiting for. The Russians are not on the same page with the government."
In April this year, Montana had already expressed frustration with the government's failure to grant the necessary mining rights to the investors, a situation that has hindered progress.
Despite plans to begin operations in the third quarter of 2024, the project has not moved forward, with the Kusile Rural District Council CEO Sifiso Hadebe confirming that there has been no movement on the ground since the investors are still waiting for the final mining licence.
The methane gas reserves in Lupane, which were discovered several years ago, have yet to be exploited commercially, despite evidence showing the resource's potential for both domestic and industrial use. The government had granted the project national status in 2007, but commercial extraction has not materialized, even after nearly two decades.
Methane gas is widely used for power generation and fertilizer production, and its successful commercial exploitation in Lupane could provide a significant boost to Zimbabwe's energy and agricultural sectors. However, without an agreement on the terms, the project remains stalled.
Michael Montana, environmental consultant for CEWALE Discovery Investment, revealed in an interview yesterday that the Russian investors behind the project are reluctant to proceed due to unresolved issues with the government's proposals. Montana explained that although the investors have received the letter they were waiting for, the terms outlined within it have not aligned with their expectations, causing a significant setback.
"I think they [Russian investors] now have the letter they were waiting for, I last spoke with them two to three months back," Montana said. "It seems the investors are delaying to come and kickstart the project because of the terms in the letter they were waiting for. The Russians are not on the same page with the government."
In April this year, Montana had already expressed frustration with the government's failure to grant the necessary mining rights to the investors, a situation that has hindered progress.
Despite plans to begin operations in the third quarter of 2024, the project has not moved forward, with the Kusile Rural District Council CEO Sifiso Hadebe confirming that there has been no movement on the ground since the investors are still waiting for the final mining licence.
The methane gas reserves in Lupane, which were discovered several years ago, have yet to be exploited commercially, despite evidence showing the resource's potential for both domestic and industrial use. The government had granted the project national status in 2007, but commercial extraction has not materialized, even after nearly two decades.
Methane gas is widely used for power generation and fertilizer production, and its successful commercial exploitation in Lupane could provide a significant boost to Zimbabwe's energy and agricultural sectors. However, without an agreement on the terms, the project remains stalled.
Source - southern eye
