ZIMBABWE’S MINERAL HERITAGE THE CASE OF HYDROCABORNS. ZIMBABWE. Key Natural Resources that develop Nations Steel Cement Copper Water Fuel. FUEL HYDROCABONS – which are they. Oil, coal , gas (Natural and Coal Gas) COAL AND GAS
ZIMBABWE’S MINERAL HERITAGETHE CASE OF HYDROCABORNS ZIMBABWE Key Natural Resources that develop Nations • Steel • Cement • Copper • Water • Fuel
FUEL HYDROCABONS – which are they • 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.
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 tonnevs Asia/Europe at +- 1,5c per km per tonne.
QUICK WINS • 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
MEDIUM/LONG TERM • 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
WARNING POINT • 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.
COALBED METHANE • 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.
OCCURRENCE • 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.
RESOURCES • 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 RESOURCE ESTIMATE (con’t) • 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
USESPower Generation, Automobile, Chemicals, Industrial and domestic heating. CHALLENGES • No infrastructure (storage and transport) • No Policy (mineral, fuel, chemical—Inter Ministerial Issue) • Technological knowhow low
QUICK WINS 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.
NATURAL GAS • 1989 Mobil Oil Study • Abandoned 1993 due to no National Policy on Gas EDUCATED ESTIMATES • Caborabassa basin 560 TCM • Mana Pools Basin 27.5 TCM • Mid Zambezi Basin 27 TCM • Mid/Longterm National Strategy is needed.