adminSenior Business Reporter
CHINA Africa Sunlight Energy has applied to government for the conversion of its special grant into a mining lease to allow the company to begin operations.This follows the company’s recent completion of its exploration work at its concession in Gwayi, Matabeleland North Province.
“Following the completion of our exploration work, we have applied to government for the conversion of our special grant into a mining lease. The process to get the mining lease is under way and we are hopeful that by the end of this month that process would have been completed,” said China Africa Sunlight general manager Retired Colonel Mugari in a telephone interview yesterday.
He said they were already working on a funding arrangement for the project adding that financiers of the mining operation were excited and had indicated that funding would be released in tranches.
The project requires $2,1 billion.
Rtd Col Mugari said construction work at the mining site was expected to begin mid-year. China Africa Sunlight is a joint venture between Old Stone Investments of Zimbabwe and Shandong Taishan Sunlight, a Chinese conglomerate.
The firm has indicated plans to establish a colliery in the Gwayi area and a 400 megawatt thermal power station. Last year, the company secured water rights from the Ministry of Water Resources and Development and a power generation licence from the Zimbabwe Energy Regulatory Authority.
Electricity generated by the company will be fed into the national grid. Power generation by China Africa Sunlight is expected to start next year.
Last year, a number of stakeholders expressed concern that coal mining operations in the area could negatively affect the construction of the Gwayi-Shangani Dam meant to supply water to Bulawayo.
The mining company has engaged different stakeholders to provide clarity on the operations of the $2,1 billion project that involves coal mining, methane gas extraction and electricity generation.
Over the years, Bulawayo has been facing perennial water woes and the Gwayi-Shangani Dam project has been cited as a critical investment that will go a long way towards addressing the water crisis in the city.
Online Reporter