In Southern Africa, AIM-listed Sable Mining announced last week that they are looking to develop a 600MW coal-fired power station in Zimbabwe in order to overcome the current power deficit, which is hampering the development of the region.
Zimbabwe drives private sector investment
Fin24 reported over the weekend, that the Zimbabwean government is introducing private investors into the energy sector in order to improve and increase the country’s power generation capacity.
Sable Mining CEO Andrew Groves said: “There is a major demand for secure and reliable power supply” across the southern African region. He added that the government of Zimbabwe has given the thumbs-up to the deal to construct a 600MW power plant in the country.”
According to the mining company, the thermal power plant will be fuelled with coal from its Lubu concession near Hwange, Fin24 reported.
Groves added: “This (power plant construction) will represent a significant step forward in solving the ongoing energy deficit which is currently presenting significant obstacles to development within southern Africa.”
According to Fin24, the power project is supported by the Ministry of Energy and Power Development, which is required to drive energy and power development projects in Zimbabwe.
Groves explained: “The combination of our quality coal together with CITIC’s access to power plant infrastructure, financing and construction expertise has the potential to create a long-term power supply.”
Power affecting mining performance
In Zambia, the power deficit resulted in local mines having to cut power supply by 30% during August.
Zambia, Africa’s second-biggest copper producer will be supplied with 70% of locally produced power and will import 30% back-up power at a high cost.
In July, Reuters reported that Zambia’s power deficit of 560MW is having a negative impact on the mining sector, which Zambia is largely dependent on for its significant contribution to the country’s economic growth— Zambia is the second largest copper producer on the continent.