Contango Holdings Plc advised that the production of washed coking coal commenced on Tuesday 23 May 2023 at its Lubu Coking Coal Project in Zimbabwe. This followed dry and wet runs of the wash plant over the preceding days and the integration of the screen with the broader processing facilities. Stockpiles of coking coal have already been established by the Wirtgen Surface Miner, which, as previously reported, can mine at a rate of up to 1,000 tonnes per hour of coking coal.

The Surface Miner continues to extract coking coal and is increasing the wash plant stockpiles further. The Company will continue to undertake studies on washed coal production to ensure optimisation. Samples will also be sent to several parties who have indicated they would look to enter into long-term offtake contracts.

This includes the Company's potential Strategic Partner under a Memorandum of Understanding and complements Contango's existing offtake for 10,000t a month of washed coal. All coking coal produced, including coal dispatched as samples, will be sold at factory gate, with the current MMCZ price still set at USD 120 per tonne. The Company expects to announce the first sales of washed coking coal in June 2023.