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Fairness Moyana, Hwange Correspondent
GIANT coal miner Hwange Colliery Company Limited (HCCL), is failing to adequately supply the Zimbabwe Power Company (ZPC) with coal, a contributing factor to the low electricity generation Hwange Power Station (HPS), the power utility’s general manager has revealed.
In a presentation on the opportunities and challenges facing ZPC during a fact finding mission by the Parliamentary Portfolio Committee on Mining and Energy on Monday, ZPC general manager, Arnold Chivurayise said HCCL was supplying 3,000 tonnes per day against a daily demand of 8,000 tonnes.
“Hwange Colliery is failing to meet the daily target of 8,000 tonnes. Instead they are delivering 3,000 tonnes resulting in a shortfall of 5,000 tonnes. This has also added to the challenges in our electricity generation as we also rely on the company as it produces one of the best thermal coals.”
Chivurayise said the situation has forced them to buy thermal coal from other mining companies to augment the deficit.
He also blamed constant breakdowns for the low power generation as most of the equipment is ageing.
Lack of working capital to fund repairs and refurbishment are the other hurdles. Units 1 and 2, which were commissioned in 1972 have outlived their lifespan of 25 years and have had to be refurbished over the years.
Chivurayise said the company was on the verge of concluding the financial closure in raising the $1.5 billion needed to fund the expansion of Units 7 and 8 and had so far managed to raise $30 million.
The financial closure is expected to be complete by the end of January next year paving way for work to begin at the station.
“We’re on the verge of concluding the financial closure, which is set to be ready by January 2015. As you may be aware the expansion of HPS will require $1.5 billion and we’ve so far managed to raise $30 million,” he said.
The committee heard that repairs on some of the units, which contributed to the decline in power generation, were halted after the company failed to raise $8 million needed to refurbish units 1 and 2.
However, the utility managed to raise half of the amount, which was accepted by the supplier who was on the ground working on the units.
In an interview acting chairperson of the committee, Simbaneuta Mudarikwa said the government was supposed to modernize the expansion of stage 7 and 8.
“Our mission here was to find out the challenges facing these utilities so we can recommend ways to assist ZPC and HCCL to maximize production of coal and power as the country is bleeding in the darkness. Now we need to have modern equipment particularly in the expansion process of stage 7 and 8 and this must be implemented with speed so we avert the current energy deficit facing the country at the moment,” said Mudarikwa.
He called on the government to assist the energy producer, which is currently producing 168MW, in accessing finance, which is needed for the refurbishment of the units at the station to ensure maximum performance.
The country is facing recurrent blackouts as all electricity generating plants are only producing 772MW daily a sharp drop from 1,200MW, which has resulted increased load-shedding countrywide with manufacturing companies being the hardest hit.
Online Reporter