The government has granted Sakunda Holdings a coalbed methane (CBM) concession in Mbungu, Matabeleland North province, where the firm intends to set up a power plant.
The special grant was previously owned by State-owned Zimbabwe Mining Development Corporation (ZMDC) which will now be a minor shareholder.
The development was announced by Finance and Economic Development Minister Professor Mthuli Ncube on Thursday while providing an update on the partial restructuring of State-owned entities.
Ncube indicated that Sakunda had been granted a special grant for coalbed methane (5 755) which measures about 333 000 hectares.
The development was confirmed by Sakunda chief operating officer Mr Charles Chitambo while speaking to The Sunday Mail Business:
I can confirm that we are indeed working with ZMDC on a coalbed methane special grant in Lupane area.
We are assembling technical teams so that we can feed necessary expertise in the boxes. As what we intend to do, it all depends on the amount of the resources. At that stage, we will be clear on what to do.
Sakunda which is owned by businessman Kudakwashe Tagwirei, alleged to be President Mnangagwa’s ally, recently secured a number of gold mines from the state.