LUPANE Methane Gas (LMG) Project executive chairperson Thabani Hove has revealed that operations are expected to begin in the second quarter of the year.
Hove, however, told Southern Eye that LMG was sourcing funds for the project while finalising discussions with investors for the project to begin.
“We are still raising capital for the Siwale LMG project. We are also discussing and having talks about the project. We are hoping that works will begin in the second quarter of the year,” he said.
Hove refused to disclose the budget of the project.
“The investors have said they are not yet willing to reveal information on the budget. But all I can say is that we are still having discussions on the project,” he said.
Matabeleland North provincial Affairs and Devolution minister Richard Moyo said he did not have much information about the project.
“All I know is they are still looking for investors. I have not gotten much details on that, but I will follow up with the Ministry of Mines for further information concerning the project,” he said.
The Lupane Methane Gas Project in Kusile Rural District’s Siwale ward 1 has been in the pipeline for years with no investor committing to the project.
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With the capacity to generate 5MW in the first two years and expanding to 15MW later, the project has the potential to grow Matabeleland North provincial capital's gross domestic product as well as spur development in the whole province.
Zimbabwe has an estimated 40 trillion cubic feet of potentially recoverable gas in the Lupane-Lubimbi area and is probably the largest deposit in southern Africa.
According to sources, several companies have been given grants by the government to prospect for methane gas in the area to no avail.
Some of them include Tumagole of South Africa, Sakunda Holdings and Shangani Energy Exploration, which is owned by Chinese steel giant Sinosteel.
The long-awaited project may finally take off after an investor Lubimbi Power and Gas moved on site to meet local leadership, culminating in a traditional ceremony.
The company, believed to be in partnership with Discovery, a holder of a special grant in the area, is reportedly almost done with the environmental impact assessment, which is said to be over 90% complete.
