Makomo Resources’ plans to acquire coal processing plant hit a snag

Business Reporter
ZIMBABWE’S second largest colliery, Makomo Resources, has said plans to secure a coal processing plant from South Africa has hit a brick wall after suppliers of the equipment have increased the price from $7 million to $8 million.
The coal processing plant deals with coking coal processing and is mainly for screening and crushing the mineral into various grades of cobles, nuts and peas according to customers’ specifications.
In a telephone interview, Makomo Resources general manager Mr Samson Mabvira said the colliery company was now looking forward to securing the plant from China.
“We are now looking forward to buying the coal plant from China because the suppliers in South Africa where we intended to buy the plant have increased their price. Initially, we agreed with them to pay $7 million but they are now shifting goal posts changing the price to $8 million,” he said.
He said last month officials from his company were in China for a quotation of the coal processing plant and established that the same equipment costs about $2,6 million.
It is envisaged that the new plant, which will be the second at the Matabeleland-based mining firm would be commissioned in the first quarter of 2012.
Meanwhile, Mr Mabvira said work at the mine was also in progress to modify the existing plant so that it performs similar functions to the envisaged equipment from China.
“As we speak, a team of experts from South Africa are at the mine modifying the existing plant so that it is has chutes to screen coal. By next week, the modification exercise will be complete,” he said.
Operations at the mine started last year following the allocation of a 7 000 hectare special grant licence by Government.
At the moment, the colliery processes and supplies between 90 000 and 100 000 tonnes of coal per month to Hwange Thermal Power Station.
It is envisaged that the commissioning of the new plant would see the coal miner more than doubling production to 300 000 tonnes per month from 120 000 tonnes being produced at the moment.
Open cast operations at the mine are expected to last for the next 30 years at one million tonnes per annum and 100 years for underground mining.
A group of six indigenous Zimbabweans own 60 percent shareholding stake in Makomo while the remainder is held by foreigners.
The colliery company is one of the companies that the Government issued with licences to mine coal in Matabeleland North.