PGI takes over Contango Muchesu coal project

Formal registration of a new majority operator just locked in the next phase for a coal project sitting on over 19,000 hectares in Zimbabwe's Hwange district.

Muchesu coal project shakeup

• Pacific Goal Investments grabbed 51% of Monaf Investments and runs operations.
• Contango Holdings keeps a 24% stake in the venture.
• A July 2024 deal originally handed control to Huo Investments.
• Huo later shifted all rights and its US$20 million facility over to PGI.

Money and growth pipeline

• Contango's guaranteed royalty floor sits at US$2 million annually.
• Fresh coke oven builds will ramp up metallurgical coal processing.
• PGI picked up the full US$20 million investment commitment from Huo.
• Muchesu spans the Karroo Mid-Zambezi coal basin area.

Corporate backdrop

• Contango Holdings is a British-based natural resources outfit.
• Gordon Thompson chairs the board and flagged the operator alignment.
• CEO Daniel Dos Santos called it a meaningful partnership evolution.
• Huo still holds a 20.42% shareholding in Contango itself.