Zimbabwe, S. Africa joint venture to extract oil from coal

The Zimbabwean government has entered into a partnership with Engen and Sasol of South Africa to extract oil from coal in a move that is expected to ease fuel problems in the long term.

Senior government officials confirmed this week that stakeholders involved in the formation of the joint venture company include the government, the Reserve Bank of Zimbabwe and other partners from within and outside the country.

The two companies are among the biggest oil companies in the world and are expected to provide technical assistance to the Zimbabwean government, local newspaper The Herald reported on Tuesday

At least 40 percent of South Africa's fuel needs are met by Sasol, which uses the "syngas" method to extract liquid fuels from coal.

The Zimbabwean government has shown interest in the extraction of liquid fuels from coal as the country strives to find long-term solutions to the ongoing petrol and diesel shortages.

Other foreign investors, including some from Austria and the Far East, have shown interest in assisting the country with the project.

Zimbabwe has substantial coal reserves that are currently utilized for power generation in Hwange and Lupane in Matabeleland North where huge coal deposits were recently discovered in the province.

Source: Xinhua