RioZim shifts to solar

ZIMBABWE Stock Exchange-listed mining group, RioZim, is optimistic about reaching financial closure for solar projects at its several mines to mitigate against power supply challenges.

In the past, RioZim has complained over the adverse impact of power cuts, which weighed down the group’s efforts to boost production.

The group has also focused on developing backup power generators across the mines but 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,” said the company.

The mining firm said its 178MW solar project 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 company has resumed engagements with various potential funding partners after the relaxation of the Covid-19 protocols worldwide.

“The group remains optimistic of reaching financial closure for the solar projects,” it said in its financial results for the year ended 31 December 2022 published yesterday.

On the 2 800MW Sengwa Power Station, RioZim said it has embarked on engagements with various stakeholders during the year under review for potential partnerships on the project.

During the period under review, power supply challenges worsened at Renco Mine, which significantly cut back production running time.

“Resultantly, gold production dropped by 28 percent from the prior year production of 561kg to 402kg in the year under review.

The group is focusing on backup generators to lessen the negative impact of acute power supply deficits to the mine despite the higher operating costs these come with,” it said.

On the financial performance, RioZim said gold production recorded a 17 percent decline to 929 kg from 1122 kg produced in the prior year.

was placed under full care and maintenance during the year, which exacerbated the decline in gold production for the current year.

The gold price remained firm and fairly consistent from the prior year and averaged US$1 766/ oz for the year compared to US$1 774/oz in the prior year.

“The group’s revenue for the year was ZW$20,6 billion, which was an exponential increase from the prior year’s revenue of ZW$5,8 billion despite the decline in gold production mainly due to the depreciation of the local currency against the United States dollar,” said the company.