THE HWANGE COALFIELD ZIMBABWE

ROLE OF COAL TO ZIMBABWE’S ECONOMY

¥ The economic development of a Nation is directlyproportional to the production and utilisation ofenergy, particularly electricity (Stoker, etal. 1975, IEA,2008)

¥ Zimbabwe is among the top 19 countries with heavydependence on coal their electricity generation (IEAStatistics, 2012).

¥ Like the rest of the SADC countries, Zimbabwe hasgreat potential for growth.

¥ Endowed with huge fossil fuel resources, Zimbabwefossil fuel remains and will for a long time be a majorsource of energy to the Nation and the region.

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KAROO BASINS IN ZIMBABWE3

Upper Sengwa Basin

Gwayi Basin

Mlibizi Basin

Lower Sengwa Basin

THE HWANGE COAL DEPOSIT

¥ Located approx. 335km NW of Byo and 100km fromVic Falls.

¥ For a period spanning almost 113 years, the Hwangecoal deposit has been the sole source of coal in theCountry.

¥ Coal from this fossil fuel deposit played a vital role inboth world wars by supplying the needs of theImperial Government/Army.

¥ The role of this coal deposit has remained key toZimbabwe’s energy provision. Thermal powergeneration in Zimbabwe is based at Hwange.

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¥ The Rudd Concession, whoseobjective was to gain mineralrights in Zimbabwe, was signedin Bulawayo on 31 October 1888by Lobengula Khumalo andCharles Rudd.

¥ This marked the beginning ofcolonial and post colonialmining in Zimbabwe (thenRhodesia).

EXPLORATION HISTORY

¥ Exploration activity commenced withthe arrival in Hwange of Albert Giese, aGerman geologist, in 1892. (Following acamp-fire account of “black stones thatburn”)

¥ He registered the first claims in 1893which he sold to Mashonaland Agency.

¥ In 1895 he pegged 400 sq miles onbehalf of Mashonaland Agency.

¥ Wankie Rhodesia subsequentlyacquired the claims and sank 15exploratory shafts.

6 EXPLORATION HISTORY (CONT.)

¥ The Main incline shaft of what became No.1 Colliery was completed in 1902.

7 EARLY MINING

EARLY COAL TRANSPORT

¥ Production commenced at No.1 Colliery in 1902.

¥ Coal was initially transported by ox wagon.

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EARLY COAL TRANSPORT (CONT.)

¥ Rail line from Bulawayo reached Hwange in 1903,enabling the Company to supply coal at agreedquantity, quality and price to mines, railways andindustry.

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¥ Subsequently more shafts (collieries) were developed.

10 HWANGE CONCESSION MINING BLOCKS

POST- INDEPENDENCE DEVELOPMENTS

¥ Three major developments took place soon afterindependence:

Ø Completion and commissioning of the 920MWHwange coal-powered station on the HwangeCoalfield;

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POST- INDEPENDENCE DEVELOPMENTS (CONT.)

Ø The commissioning of the Main Opencast Mine whichemployed the “Dragline with Supplementary StrippingMethod” to supply the new Thermal Plant with coal.

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POST- INDEPENDENCE DEVELOPMENTS (CONT.)

Ø A fully mechanised bord and pillar mining method wasadopted in 1998 by the introduction of a mining equipmentsuite comprising a Continuous Miner, three Shuttle Carsand a mechanical Roof bolter.

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HWANGE COAL DEPOSIT SURFACE GEOLOGY14

BH A COAL SEAM PROXIMATE ANALYSIS15

Borehole I.D Sample I.D Depth from Depth to Moisture Ash Volatiles Sulphur Phos Swelling Index

BH A SM01 45.13 46.68 0.1 81.0 10.9 -1.00 0.069 -

BH A SM02 46.68 47.68 0.2 72.1 12.8 -1.00 0.244 -

BH A SM03 47.68 48.68 0.5 56.6 15.0 -1.00 0.176 -

BH A SM04 48.68 49.68 0.4 61.1 13.2 -1.00 0.084 -

BH A SM05 49.68 50.68 0.5 54.0 14.9 -1.00 0.029 -

BH A SM06 50.68 51.68 0.3 68.9 13.9 -1.00 0.044 -

BH A SM07 51.68 52.68 0.2 86.1 11.4 -1.00 0.076 -

BH A SM08 52.68 53.48 0.3 65.1 13.4 -1.00 0.244 -

BH A SM09 53.48 54.18 0.6 31.3 18.1 -1.00 0.268 -

BH A SM10 54.18 54.68 0.8 14.6 23.8 -1.00 0.056 -

BH A SM11 54.68 55.68 0.6 26.9 21.0 -1.00 0.041 0.5

BH A SM12 55.68 56.18 0.6 21.0 21.9 -1.00 0.028 0.5

BH A SM13 56.18 56.68 0.8 14.8 24.0 -1.00 0.142 0.5

BH A SM14 56.68 57.18 0.8 16.9 23.4 -1.00 0.171 0.5

BH A SM15 57.18 57.68 0.6 18.7 22.6 -1.00 0.225 0.5

BH A SM16 57.68 58.18 0.7 15.2 22.4 -1.00 0.178 0.5

BH A SM17 58.18 58.68 0.8 16.0 24.0 -1.00 0.029 0.5

BH A SM18 58.68 59.18 0.8 13.0 23.7 -1.00 0.082 0.5

BH A SM19 59.18 59.68 0.8 16.0 23.4 -1.00 0.019 0.5

BH A SM20 59.68 60.18 1.3 8.4 27.3 -1.00 0.017 1.0

BH A SM21 60.18 60.68 1.3 7.5 28.7 -1.00 0.010 1.5

BH A SM22 60.68 61.18 1.0 9.9 26.7 -1.00 0.008 1.5

BH A SM23 61.18 61.68 1.4 7.3 31.4 -1.00 0.009 2.0

BH A SM24 61.68 62.18 1.1 9.1 30.3 -1.00 0.009 2.0

BH A SM25 62.18 62.48 1.0 11.7 29.8 -1.00 0.012 1.5

BH B COAL SEAM ANALYSIS16

Borehole I.D Sample I.D Depth from Depth to Moisture Ash Volatiles Sulphur Phos Swelling Index

BH B SM18 345.56 346.03 0.3 52.2 15.3 0.80 0.100 2.0

BH B SM19 346.03 346.53 0.5 13.7 23.4 1.11 0.068 1.0

BH B SM20 346.53 347.03 0.4 11.0 24.7 1.09 0.067 1.0

BH B SM21 347.03 347.53 0.4 18.3 22.4 1.09 0.067 1.0

BH B SM22 347.53 348.03 0.5 18.6 21.9 1.07 0.067 1.0

BH B SM23 348.03 348.53 0.4 18.4 22.4 0.84 0.100 1.0

BH B SM24 348.53 349.03 0.5 8.0 27.5 1.72 0.027 5.0

BH B SM25 349.03 349.53 0.5 11.2 24.3 1.72 0.026 1.0

BH B SM26 349.53 350.03 0.6 13.3 24.3 1.26 0.048 1.0

BH B SM27 350.03 350.53 0.4 11.2 23.6 1.08 0.073 2.0

BH B SM28 350.53 351.03 0.4 13.4 23.6 1.11 0.068 1.0

BH B SM29 351.03 351.53 0.5 8.0 26.1 1.10 0.075 4.0

BH B SM30 351.53 352.03 0.4 12.8 24.4 0.81 0.098 1.0

BH B SM31 352.03 352.53 0.4 13.0 23.3 1.75 0.033 1.0

BH B SM32 352.53 353.03 0.5 6.5 29.9 1.74 0.028 6.0

BH B SM33 353.03 353.53 0.4 8.0 27.5 1.76 0.031 4.0

BH B SM34 353.53 354.03 0.5 8.1 27.4 1.24 0.047 4.0

BH B SM35 354.03 354.53 0.4 7.5 30.0 1.22 0.054 8.0

BH B SM36 354.53 355.03 0.5 7.4 28.8 1.27 0.047 4.0

BH B SM37 355.03 355.73 0.5 6.6 29.9 1.76 0.034 8.0

BH B COAL SEAM ANALYSIS (CONT.)17

Borehole I.D Sample I.D Depth from Depth to Moisture Ash Volatiles Sulphur Phos Swelling Index

BH B SM01 329.16 329.53 0.3 61.5 12.8 0.29 0.047 -

BH B SM02 329.53 330.53 0.3 80.1 10.9 0.32 0.053 -

BH B SM03 330.53 331.53 0.2 78.2 11.6 0.29 0.048 -

BH B SM04 331.53 332.53 0.3 58.7 17.1 0.33 0.048 -

BH B SM05 332.53 333.53 0.3 55.9 14.4 0.29 0.049 -

BH B SM06 333.53 334.53 0.5 39.7 19.6 0.84 0.110 -

BH B SM07 334.53 335.53 0.2 66.2 12.7 0.81 0.110 -

BH B SM08 335.53 336.53 0.3 57.8 16.1 1.22 0.038 -

BH B SM09 336.53 337.53 0.6 31.4 19.3 0.82 0.099 -

BH B SM10 337.53 338.53 0.3 58.6 16.9 0.75 0.117 -

BH B SM11 338.53 339.53 0.3 39.6 19.3 0.64 0.128 -

BH B SM12 339.53 340.53 0.3 39.4 18.2 0.60 0.129 -

BH B SM13 340.53 341.53 0.3 39.5 19.8 0.61 0.130 -

BH B SM14 341.53 342.53 0.5 48.9 18.4 0.67 0.122 -

BH B SM15 342.53 343.53 0.3 58.7 16.8 0.67 0.123 -

BH B SM16 343.53 344.53 0.2 66.1 13.0 0.31 0.047 -

BH B SM17 344.53 345.56 0.2 62.3 13.2 1.22 0.049 -

HWANGE MAIN SEAM

CARBONACEOUS MUDSTONES

HPS (Thermal Coal)

MAX. 24% ASH

HCC (Coking Coal)

MAX. 15% ASH

MIN. 23.5% VOLATILES

FOOTWALL

INC

REA

SE IN

VO

LATI

LE &

SU

LPH

UR

CO

NTE

NT

INC

REA

SE IN

ASH

&

PHO

SPH

OR

US

CO

NTE

NT

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19 THE OPENCAST PROCESS FLOW

UNDERGROUND MINING20

COAL MARKETS

¥ The Hwange coal deposit supplies approx. 80 – 85% ofthe Zimbabwean market with most of it coming fromthe Hwange Colliery Operations???

¥ The average distribution pattern by sector is as shownin the table below.

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SECTOR MONTLY TONNAGE(tpm)

Industry 120,000???

Agriculture 10,000???

Mines 50,000???

Power 200,000???

TOTAL 380,000???

PRODUCT SIZE RANGE

¥ Dry & Wet screens Rounds - 150 + 100 mm

¥ Dry & Wet Screens Cobbles - 100 + 50 mm

¥ Dry Screens Nuts/pea/duff - 50mm

¥ Wet Screens Nuts - 40 + 25mm

¥ Wet Peas - 25 + 10mm

¥ Washed Cobbles - 50 + 40mm

¥ Washed Nuts - 40 + 25mm

¥ Washed Peas - 25 + 10mm

¥ Washed Duff - 10 + 0.5mm

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COAL MARKETS (CONT.)

¥ Currently the Zimbabwean market is subdued againsta background of increasing new entrants into the coalmining industry. This scenario could lead to a demiseof the coal sector.

¥ External markets have to date been limited toCountries of the sub-region (Zambia, DRC & SouthAfrica).

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COAL MARKETS (CONT.)

¥ Opportunities are available in the off-shore markets(India, China).

¥ Zimbabwe’s cost of production and transport ishowever not internationally bench-marked but it ishigher than regional benchmarks. This is largely aresult of the National Economic Challenges. Thesituation has to change positively if Zimbabwean coalis to be competitively placed on the InternationalMarket.

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TRANSPORT

¥ Both rail and roadconnect the coalfield tomajor centres in thecountry. See map

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ELECTRIC POWER

¥ The Hwange coaldeposit isconnected to theprimary powertransmissionsystem.

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Chakari

WATER SUPPLY

¥ Coal mining requires largeamounts of water, affectsnatural water systems andhence calls for a balance ofthe two systems.

¥ The coalfield draws its waterfrom the Zambezi River bypipe line (44km long) andfrom deep boreholes(200m) located along theDeka Fault.

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HWANGE

SKILLS & LABOUR

¥ Sound human skills base and high literacy rate in thework force.

¥ Hwange has a nationally credited skills training centre(artisans) and a nurse training school.

¥ The nation has universities that are producinggraduates of various disciplines (mining, geology,metallurgy, engineering and human resources)

¥ Secondary education accessible to as much populationas possible to provide a literate and trainable pool.

¥ Generally peaceful workforce despite having labourlaws skewed towards labour.

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THANK YOU