Coal producer invests US$34 million in new project

By Staff reporter

Zimbabwe’s largest coal producer, Makomo Resources is set to construct a US$ 34 million, 12,5km conveyor belt to move thermal coal from its Hwange mine to Zimbabwe Power Company (ZPC) Hwange Power Station expansion project Unit 7 and 8.

The move is in line with Government’s quest for the country to be energy sufficient by 2023 cutting on power imports.

ZPC Hwange expansion project which is set to add  a 600MW to the national grid, is being spearheaded under a special investment vehicle called Hwange Electricity Supply Company (HESCO) with an equity ratio of 64 percent ZPC and 36 percent Sinohydro from China.

Makomo Resources General Manager, Kuda Nyabonda told this publiction that the coal miner had inked a coal supply contract with HESCO.

“We have a contract with the power company to supply thermal coal to Units 7 and 8 once they are commissioned. In preparation for this, we will soon be installing a 12,5km conveyor belt to move about 200 000 tonnes of thermal coal per month to the power station.

“Our target is to complete installing the US$ 34 million conveyor belt by March next year. If there is a challenge we will use trucks in the interim,” said Nyabonda.

According to the timelines of the Hwange 7 and 8 expansion project the two units will be on commercial operation in October 2021 and January 2022 respectively.

Makomo Resources owns 7 000 hectares special grant for coal mining and produces about 300 000 tonnes of coal per month through opencast mining.

Zimbabwe is currently importing about 200MW during pick hours and is edging closer to becoming power self-sufficient, with other projects such as Kariba South Expansion project and Batoka Hydro Electric Scheme at various stages of implementation.

ZPC currently operates four coal fired power stations, Hwange, Bulawayo, Munyati and Harare thermal power stations, and one hydro power station, Kariba South Power Station.  All five have a total of 1960 MW as installed capacity.

ZPC was incorporated in 1996 as an investment vehicle in the generation of electricity and became operational in 1999. The organisation has been authorised to construct, own, operate and maintain power generation stations for the supply of electricity.