admin
Business Reporter
RioZim Limited says it is optimistic about reaching financial closure for its 178 megawatts (WM) solar projects after the group resumed engagements with various potential funding partners.
The solar plants will supply electricity to Rio Zim’s mines namely Renco, Cam and Motor and Dalny.
Group chairman Saleem Beebeejaun said progress on the projects had been stalled due to the Covid-19 pandemic with traction only recorded in obtaining all the regulatory requirements for the implementation of the solar projects across the group’s mines.
“The group has since resumed engagements with various potential funding partners after the relaxation of the Covid-19 protocols worldwide and the business remains optimistic of reaching financial closure for the solar projects,” he said, while commenting on the group’s financial results for the year to December 31, 2022.
The RioZim chairman said power supply has remained a major threat to the Group’s operations and the business has been focusing on back-up power generators across the mines albeit at a significantly high operating cost.
“In the medium to long term, the group continues to pursue its pipeline power projects, with particular focus on solar energy, which will be a lasting solution to the power challenges for the mines,” he said.
Mr Beebeejaun noted the group’s other project, the 2 800MW Sengwa Power Station has been constrained by funding issues.
However, he said the company continued its engagements with various stakeholders during the year for potential partnerships on this project and stakeholders will be timely informed on any further developments.
The Sengwa coal deposit is situated in North Western Zimbabwe, with proven ore reserves in excess of 525 million tonnes.
The RioZim power station project is based on a coal resource of 1,3 billion tonnes, capable of generating up to 2 000MW of power, almost as much as Zimbabwe’s total installed capacity.
The proposed project envisages the construction of a number of smaller power plants over the next ten years. RioZim said its prospects will be underpinned by the successful performance of the BIOX plant at flagship mine Cam & Motor and the 500 tonnes per hour plant at diamond company RZM Murowa once all the necessary teething challenges are addressed.
The group invested in excess of US$100 million in two high-tech expansion projects to secure the future of the company, these being the Biological Oxidation (BIOX) plant at Cam & Motor mine and Project Crown Jewel 500tph plant at RZ Murowa. RioZim said the two multimillion-dollar investments came in the face of a mix of macroeconomic adversities, power shortages and increased global uncertainty.
The BIOX plant was officially commissioned by President Mnangagwa on April 14, 2022 while in 2020 the group embarked on a 500 tonnes per hour greenfield project plant, which allows the company to process all of its ore sources on-site, low-grade ore and re-crush stockpiles to maximise diamond recovery. The project is part of the group’s phased plans to invest over US$450 million into the expansion of its diamond operations with construction of the underground mine expected to cost US$400 million.
Online Reporter