admin
Business Reporter
MATABELELAND North-based coal and methane gas mining concern, China Africa Sunlight Energy, has started mobilising about $1 billion required to implement the first phase of the project. The company that recently completed exploration activities in the Gwayi area had its Environmental Impact Assessment report approved by the Environmental Management Agency (EMA) in September.
“We are in the funding process and the process is at an advanced stage. We are hoping that before the end of the year we would have mobilised up to $1 billion required under the first phase of the project involving site drilling and construction of staff quarters,” said the firm’s acting general manager Retired Colonel Charles Mugari in an interview yesterday.
“Site drilling and construction of staff quarters, which is expected to begin early next year, will take about 15 months to complete,” he said.
The mining and power generation project involving Old Stone Investments of Zimbabwe and Shandong Taishan Sunlight, a Chinese conglomerate, requires a total of $2.1 billion.
The joint venture operation would see the development of a colliery in Gwayi and a 400 megawatt thermal power station.
China Africa Sunlight Energy secured water rights from the Ministry of Water Resources and a 400MW power generation licence from the Zimbabwe Energy Regulatory Authority.
The power that the company will generate would be fed into the national electricity grid by 2015.
It is hoped that if commissioned, the power station will go a long way in improving electricity supply in the country which over the years has faced incessant power constraints.
At the moment, Zimbabwe was producing 1 400 MW against a national demand of 2 200 MW.
According to the Confederation of Zimbabwe Industries (CZI) manufacturing survey report released in September, capacity utilisation in the industrial sector has declined due to power shortages among other fundamentals.
Online Reporter