daniel chigunwe
Business Writer
RioZim Limited says engagements for potential funding for its energy projects, the 178 Megawatts (MW) solar project and Sengwa, are still ongoing despite having failed to secure funders over the years.
RioZim is an integrated mining and metallurgical company in Zimbabwe with an extensive portfolio of resources in gold, base metals, diamonds coal and chrome.
Its mining operations include Renco Gold Mine in Masvingo Province and Cam & Motor Gold Mine and Empress Nickel Refinery, both in Mashonaland West Province.
RioZim also has interests in Sengwa Colliery (Private) Limited with coal assets in Gokwe North; Murowa Diamonds (Private) Limited with operations in Zvishavane; and Maranatha ferrochrome refinery in Kadoma.
The 178 MW solar project, when complete, will service Rio Zim’s mines, namely Renco, Cam and Motor and Dalny Mine. In addition, the group has over the years pinned its power supply hopes on the 2,800 MW Sengwa Power Station.
“In the energy business, there has been no movement on the company’s energy projects, being the 178 MW Solar Project and Sengwa Project, as both are now at the funding stage and the company continues engagements with various stakeholders for a potential funding arrangement,” said group chairman, Saleem Beebeejaun, in a statement of the financials for the half-year to June 30, 2024.
Power supply has remained a major threat to the group’s operations, and the business has been focusing on backup 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.
The Sengwa coal deposit is situated in north-western Zimbabwe, with proven ore reserves in excess of 525 million metric tonnes.
The RioZim power station project is based on a coal resource of 1,3 billion metric tonnes, capable of generating up to 2,800 MW of power, almost as much as Zimbabwe’s total installed capacity.
China’s Industrial and Commercial Bank of China (ICBC) had planned to finance the coal-fired power plant for US$3 billion but later withdrew citing environmental problems.
Following the withdrawal of ICBC, there have been no takers for the project, and RioZim, in its 2022 financials, said it had set up new financing options to attract potential investors.
For the half-year to June 2024, RioZim gold production declined 27 percent to 306 kg compared to 417 kg achieved in the same period in the prior year, mainly due to Cam & Motor Mine operating suboptimally due to low plant throughput and depressed recoveries.
Cam & Motor Mine is the group’s flagship gold producer, and the mine faced mining and ore supply challenges to the plant due to lagging pit development.
Beebeejaun said Renco Mine also recorded lower gold production due to inconsistent plant performance.
During the period under review, the gold price averaged US$2 165 per ounce (oz), which was 13 percent in the positive from US$1 910/oz recorded in the comparative period.
Bongani Ndlovu