adminCHINA-AFRICA Sunlight Energy Limited has been granted mining rights to start coal mining as the company pledged an initial $10 million towards the construction of the Gwayi-Shangani Dam in Matabeleland North.
The dam is a major component of the National Matabeleland Zambezi Water Project (NMZWP), viewed as the long term solution to Bulawayo’s perennial water woes.
The company is a joint venture between Old Stone Investments, a local vehicle and Shandog Taishan Sunlight, a Chinese conglomerate, which focuses on coal mining, methane coal bed gas extraction and thermal power generation.
China-Africa Sunlight Energy Limited intends to start building a coal mine early next year.
The company’s general manager Retired Colonel Charles Mugari told our Harare Bureau the firm had enough financial muscle to do the project.
“We intend to invest $2,1 billion in developing an underground coal mine building a 2,100 megawatt plant by 2016 and already a $10 million has been pledged that will go towards the construction of the dam.
“I can confirm that government granted us special mining rights for our coal mining project and the development is already due for gazetting,” said Rtd Col Mugari.
He said the environmental impact assessment for the project had been completed with everything in place for preliminary preparations to take off.
“We have moved firmly on the ground and we hope civil works will begin next month. Construction of the storage facilities is also scheduled for next month, so I can confirm that its work in progress and the company has fulfilled what EMA required during our exploration exercise,” he said.
The company is expected to sink its first mining shaft in November this year and Rtd Col Mugari said there is adequate funding available for the project to be a success. He said the drilling will take up to 15 months and the actual mining will start by June 2015.
China-Africa Sunlight Energy plans to invests US$2,1 billion in the projects in the next four years, creating 4,500 jobs and transforming Gwayi area into a town.
The company is targeting to produce three million tonnes of thermal coal, one million tonnes of washed coal and 500,000 metric tonnes of cocking coal per year.
On power generation, the joint venture is expected to connect 400 MW onto the national grid by 2015.
The company is also looking at developing a fertiliser plant, brick moulding factory and coke used in steel smelting.
In addition, China-Africa Sunlight Energy is also conducting studies to measure the amount of gas reserves available in the Gwayi area.
Depending on the outcome of the gas study, the company wants to start a programme piloting methane gas for domestic use in Hwange and extend this to Bulawayo if successful. – Harare Bureau.
Online Reporter