peter
Michael Magoronga, Midlands Correspondent
KWEKWE-based ferrochrome company Zimasco is carrying out feasibility studies with a view of constructing solar and thermal power plants to augment its power supplies from power utility Zesa.
The company is on an expansion drive that will see more furnaces being constructed as well as an agglomeration and sinter plant in a bid to double its production by end of the year. Zimasco resumed operations last month after having switched off in November following a standoff with power utility Zesa over power tariffs.
Chief Operations Officer, Mr Namatai Mapfumo said although the capacity and size of the solar plant was not yet known, the thermal plant was expected to produce about 15MVA (Megavolt Amperes).
“We are in the process of doing a feasibility study on solar. We are in talks with potential partners with a view of putting up a sizable solar power plant,” he said.
Engagements with Kwekwe City Council to acquire additional land for the project are already underway.
“We are still working on issues to do with citing the location of the plant, the size and all other issues. We are still in the preliminary stages of the project,” he said.
On the thermal plant, Mr Mapfumo said it would use off gasses.
“We are also pursuing setting up our colliery plant at Zimasco for the generation of power from off gasses. It will produce about 15MVA power. The issues are on the table and are running simultaneously,” said Mr Mapfumo.
He said the issue of power was key as the company would require more power as it looks set to increase production. Currently, the company is producing about 144 000 tons of ferrochrome and is expected to double that once the expansion programme is complete.
Zimasco requires about 47 667 000kWh (kilowatt-hour)/month and once the expansion project which includes refurbishing of two furnaces, construction of two new furnaces as well as an agglomeration and sinter plant, an additional 48 148 000kWh/month power will be required.
Mr Mapfumo said talks were still ongoing with Zesa after they scrapped the special tariffs for ferrochrome producers and increased tariffs by 85 percent, making it unviable. The company switched off for about three months after the two parties had initially failed to reach common ground.
“We had to look for what is best for both parties as well as the nation. We understand where the power utility is coming from after they scrapped the special tariffs and effected the cost recovery tariffs thereby increasing power charges by 85 percent. This made it impossible for us to produce and recover costs,” he said.
He said the price of ferrochrome had also plummeted making it difficult to recover costs. The expansion programme is also going to ensure that state of the art furnaces, which do not require more power are constructed.
Online Reporter