US$2bn shot in arm for Gwayi

The company was established in 2011 through a joint venture between Oldstone Investments, a Zimbabwean investment vehicle, and Shandong Taishan Sunlight, a Chinese conglomerate.
Unveiling the huge investment plan in Bulawayo this week, China-Africa Sunlight Energy deputy general manager Mr Charles Mugari said they intended to start operations mid-year once they receive an Environmental Impact Assessment certificate from the Environment Management Agency.

“The company will invest US$2,1 billion to carry out thermal coal mining with a total planned output of three million tonnes per year,” he said.
“We intend to set up a washed coal peas plant and with planned output of one million tonnes of coal peas per year. We also intend to set up a coking coal plant with planned output of 500 000 tonnes per year.”

Mr Mugari said the project would create over 4 500 new jobs. He said the project was an underground mining operation which would have minimal negative impact on the environment.
“We intend to set up a power generation plant and we expect to connect 400MW to the national grid by 2015. This project will bring relief to both the farming and manufacturing sectors,” he said.

“This project will seek to extract methane gas for both domestic and industrial use. Domestic commercialisation of the gas project will have a pilot programme in Hwange and eventually Bulawayo.”
Mr Mugari said through other downstream projects, the company would set up a chemical manufacturing plant to produce fertiliser and a range of agro and industrial chemical products.

“There will also be production of bricks, to be done from the ashes generated from the power generation process,” he said.
The company has so far secured water rights from the Ministry of Water Resources and a power generation licence from Zera and finalised national grid connection modalities with Zesa.

In compliance with the empowerment and indigenisation regulations, Mr Mugari said the company had contributed US$1 million to the community share ownership scheme. He said the project was set to transform Matabeleland North Province, especially Gwayi, into a town through the construction of roads and other social amenities, such as clinics.