Mar3, 2011 11:16am GMT
By Wendell Roelf
KLEINMOND, South Africa (Reuters) - Zimbabwe mining group RioZim expects to produce first electricity from the planned 2,400 megawatt Sengwa coal power plant by 2014, a senior official said on Thursday.
Zimbabwe, which relies heavily on its mining industry to prop up an economy struggling to overcome years of decline, is also battling a chronic power shortage which has curbed output.
"We should have the first 600 megawatt unit on site by 2014 with the last unit completed by 2020. Zimbabwe is desperate for power," Managing Director Josphat Sachikonye told Reuters on the sidelines of the NG Mining conference.
The company also expects in May to seal a strategic partnership deal for the $3 billion plant, which will get feedstock from the Sengwa coal mine, a 50-50 joint venture with Rio Tinto.
"The appetite has been very strong and we are in some serious discussions which are close to conclusion with regard a strategic partner. By May we expect to reach a deal," he said.
Sachikonye did not want to provide details of the likely partner.
RioZim, from which Rio Tinto divested in 2004, also operates Renco gold mine, Empress nickel refinery and owns 22 percent in Murowa diamond mine, with the remainder held by Rio Tinto.
Sengwa coal mine had reserves of 1.3 billion tonnes, and Sachikonye said they would look at thermal coal exports once infrastructure challenges were overcome.
He said the company expected its deep Cam and Motor gold mine, which stopped producing in 1968, to restart production next year at an initial 66,000 ounces before reaching full production at nearly double the rate in 2014.
"We are convinced that there is gold of up to 50 tonnes," Sachikonye said of strikes closer to the surface.
Once the restarted gold mine and power plant projects were operational, RioZim would consider a secondary listing to attract more capital and increase shareholder value.
"We have talked to the Johannesburg Stock Exchange and the London Alternative Market and a secondary listing could happen by 2014," Sachikonye said.
Zimbabwe, which relies heavily on its mining industry to prop up an economy struggling to overcome years of decline, is also battling a chronic power shortage which has curbed output.
"We should have the first 600 megawatt unit on site by 2014 with the last unit completed by 2020. Zimbabwe is desperate for power," Managing Director Josphat Sachikonye told Reuters on the sidelines of the NG Mining conference.
The company also expects in May to seal a strategic partnership deal for the $3 billion plant, which will get feedstock from the Sengwa coal mine, a 50-50 joint venture with Rio Tinto.
"The appetite has been very strong and we are in some serious discussions which are close to conclusion with regard a strategic partner. By May we expect to reach a deal," he said.
Sachikonye did not want to provide details of the likely partner.
RioZim, from which Rio Tinto divested in 2004, also operates Renco gold mine, Empress nickel refinery and owns 22 percent in Murowa diamond mine, with the remainder held by Rio Tinto.
Sengwa coal mine had reserves of 1.3 billion tonnes, and Sachikonye said they would look at thermal coal exports once infrastructure challenges were overcome.
He said the company expected its deep Cam and Motor gold mine, which stopped producing in 1968, to restart production next year at an initial 66,000 ounces before reaching full production at nearly double the rate in 2014.
"We are convinced that there is gold of up to 50 tonnes," Sachikonye said of strikes closer to the surface.
Once the restarted gold mine and power plant projects were operational, RioZim would consider a secondary listing to attract more capital and increase shareholder value.
"We have talked to the Johannesburg Stock Exchange and the London Alternative Market and a secondary listing could happen by 2014," Sachikonye said.
Posts
No comments:
Post a Comment