China Africa to complete coal mine, 300MW power plant in 2016

via China Africa to complete coal mine, 300MW power plant in 2016 | The Source March 13, 2014

China Africa Sunlight Energy says it will complete its coal mine and a 300 megawatt power station at its concessions in Gwayi, Matabeleland North  by 2016, creating over 4,500 jobs.

Addressing delegates at a Parliament seminar on Thursday, the company’s deputy general manager Charles Mugari said as part of the first phase of the project, the company will build a modern residential complex for 2,000 workers, a coal mine and power plant.

“By 2016 we hope that the mine will be up and running,” he said, adding that the company was converting its special grant to a special mining right.

He said second phase of the power project will focus on methane gas extraction and another 300MW plant to be completed in mid-2017.

The company intends to establish another 400MW plant powered by methane gas.

China Africa is a 50/50 joint venture between Zimbabwe’s Old Stone Investments and Shandong Taishan Sunlight of China, plans to  spend $2.1 billion in the next five years on power generation, coal mining and methane bed gas extraction in  Matabeleland north.

“We have embarked on a very comprehensive exploration process  and by end of this year we will know exactly the minable reserves of methane gas,” he said.

Mugari said the projects, which would be carried out on 100,000 hectares of land would create 4,500 jobs in the next two years in a country where over 80 percent of the adult working population is unemployed.

The company is also planning to build  hotels and business complexes.

“This is going to be the beginning of the creation of an economic zone which will attract more foreign direct investment,” he said.

China Africa will also establish a coking plant for coal required in processing of steel.

Mugari said they had entered into a power purchasing agreement with Zimbabwe Electricity Distribution Company (ZETDC)  although tariffs were being finalised.

A transmission arrangement with the Zimbabwe Energy Regulatory Authority had also been agreed upon.

“We have also completed our environment impact assessment  for the mine and right now we are working on the EIA for the power generation and the documents are with the Environment Management Agency,” he said.

The company is also working with the water ministry to assist in the construction of the Gwayi-Shangani dam which it seeks to benefit from.

Mugari urged Parliament to come up with conducive legislation that encourages foreign direct investment and for government to harmonise its licencing regulations.

On Wednesday another company, Shangani Energy Exploration (SEE), said it has plans for $780 million gas project and build a 400 megawatt power station in the same area.

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7 comments on “China Africa to complete coal mine, 300MW power plant in 2016
  1. John Thomas says:

    Jolly nice if any of this is even remotely true. What are the odds?

  2. Mixed Race says:

    Nice statistics with zero results for the people at the end.Has it not registered in your mind Mr Mugari that China is looking for coal everywhere for its industries back home?They are at the moment working hard to get extra coal from the Eastern Australia but the environment people there are against this because the mining of coal destroys the landscape badly,eg the dust from it is radiated at the mine itself and along the transportation routes.Thus why these Chinese need our coal at all cost.
    I am not sure what you are saying about power generation because you talk of many phases after the mine is operational.The Chinese do not want to buy our expensive coal from Wankie Colliery Mine so they want to mine it and ship it to China at a give away price.We are not fools who take things on first sight.
    Just visit Hwange then you will understand fully what I am saying.

  3. Africanson says:

    Wankie started operating long before 1980. its common knowledge that its cheaper and easy to extract minerals soon after heavy capital outlay. You can not expect coal from Wankie to be cheaper because its not easily accessible as compared to the 70s hence its expensive. Canada today is telling the world that their diamonds are now expensive to mine as copmpared to the last years. Therefore a new coal mine is expected to offer cheaper coal. A pre-school drop out with half a brain can easily understand this. This is a good development to Zimbabwe if the facts and time tables are going to be followed.

  4. Mixed Race says:

    @Africanson-you comment with very little constructive facts and you show limited power of thinking.Why pollute more of Zimbabwe with no guarantees that it will provide claimed jobs and electricity Mr Clever? You quote Canada without doing your proper research,I have limited space here to prove you wrong about your claims.
    My main concern is about pollution which causes serious health problems to the masses.You should remember that what you call cheap is always expensive at the end when you factor in all the side effects,therefore your misguided thinking is too simplistic and dangerous.Who is a pre-school drop out now?

  5. Johnny k says:

    The parliamentarians must have this section of hansard typed out and ask the relevant questions when this idiotic statement is proved to be a total fabrication. (The end of 2015 is only 21 months away)2000 houses, a mine and a 300MW power station. Utter Nonsense.

  6. jay c says:

    Power production has a long lead time. 2016 is just around the corner. However, mining of new coal fields is a good start and if we are to use the coal burning method to produce power, we shall continue to pollute the environment, as is the case at Hwange. We need to use coal gasification technology, which is widely used in the developed world. Power from coal is by far the largest activity in most countries, because hydro and other renewables are not abundant resources in our world, but coal is abundant. Zimbabwe’s future projects will of course rely heavily on coal production. The Chinese intervention is necessary as we have no capital for such expensive projects.
    However, we must detest dreamers, who continually mislead our nation into the false belief that in 5 years we can produce 900 megawatts from coal, maybe in twenty years will be able to achieve this. We ask to be regularly advised on progress in this key area of our development. We must not laugh at those who are trying to solve our power problems in Zimbabwe. We must encourage them but they must not mislead us as our power problems are real and have deterred meaningful economic progress for over 34 years in Zimbabwe.

  7. Mixed Race says:

    @jay c-you talk sense I hope @Africanson will understand what you are trying to explain,but I want to highlight that this project will require a stable source of reliable water supply which is not available in Lupane region at the moment.You need a lot of water to generate steam before turning the turbines to generate electricity.
    Hwange is strategically place near the Deka Drum pumping station complex.We do not want day time dreamers who give false promises without proper planning.
    I doubt that they will ever construct these power stations in our life time.I suspect that their aim is to have cheap coal and natural gas for their home market.What has happened with our diamonds and who has benefited?Empty promises were given to the poor villagers in Marange ,who have been reduced to permanent beggars.We should learn from our past experience unless we are fools.

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