REG - Contango HoldingsPLC - Completion of Pilot Coke Plant at Lubu Project

Contango HoldingsAnnouncement

01/03/2023 07:16

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RNS Number : 4223R  Contango Holdings PLC  01 March 2023

Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural Resources

1 March 2023

Contango Holdings Plc

('Contango' or the 'Company')

 

Completion of Pilot Coke Plant and first Coke Manufacture at Lubu Project

 

Contango Holdings Plc, the London listed natural resource development company,
is pleased to advise that construction of a small-scale coke battery has been
completed at the Lubu Coal Project in Zimbabwe ('Lubu'). The pilot coke plant
has been constructed to provide on-site capability to manufacture coke from
washed coking coal produced at Lubu for testing by future offtake partners and
for the Company's internal studies and quality control. The ultimate coke
batteries to be installed at Lubu for future production and sales will be
considerably larger and a different specification.

 

As previously reported, to date the manufacture of coke and subsequent studies
from washed coking coal from Lubu has taken place remotely, with highly
encouraging results. The ability to now manufacture coke on site is a
significant step, providing accurate in the field results, a crucial step in
securing partners in the Company's coke manufacturing strategy.

 

First Coke Manufacture

 

Following completion of the pilot plant in February 2023, the Company has
subsequently produced approximately 4 tonnes of coke, from a sample of washed
coking coal from Lubu. A significant portion of this production will be
delivered to the Multi-National Company that entered into a Memorandum of
Understanding with Contango in December 2022. This is part of the ongoing due
diligence process to confirm suitability for their requirements ahead of a
potential transaction.

 

Carl Esprey, CEO of Contango, commented:

 

"Whilst the expected margins on our coking coal production are very
attractive, we have always maintained the highest margin business stems from
the manufacture of coke at Lubu. Accordingly, we have already completed
numerous small-scale tests remotely to assess the coke characteristics from
Lubu, with highly encouraging results.

 

"The completion of the pilot coke plant will now enable us to generate larger
coke production for testing, something required to enable us to conclude
discussions under our MOU and, as required, provide additional samples to
other parties who have expressed interest in coke produced from Lubu.

 

"This is a notable step in the evolution of the Lubu Project and I look
forward to providing further updates with respect to the planned manufacture
of coke in due course."

Stacked coking ovens 'cooking' the coal at 900-1,100°C

 

'Cooked' coking coal being quenched by water

 

 

 

Final coke product

 

For further information, please visit www.contango-holdings-plc.co.uk or
contact:

 

 Contango Holdings plc                   E: contango@stbridespartners.co.uk

 Chief Executive Officer

 Carl Esprey

 Tavira Financial Limited                T: +44 (0)20 7100 5100

 Financial Adviser & Broker

 Jonathan Evans

 St Brides Partners Ltd                  T: +44 (0)20 7236 1177

 Financial PR & Investor Relations

 Susie Geliher

 

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