SABLE Chemicals will continue relying on a government subsidy to pay its power bills as the company’s plans to turn to the cheaper coal gasification process in the production of ammonium nitrate are set to take longer to accomplish.
BLESSED MHLANGA STAFF WRITER
Sable Chemical chief executive officer Jack Murehwa said it was still early days to say when exactly the company would shut down the expensive electrolysis plant and turn to the cheaper way of manufacturing ammonium nitrate using coal.
The company owes the Zesa Holdings more than $30 million in power bills.
“Sable continues to pursue the coal gasification project as alternative technology to electrolysis.
Most of the preliminary work for the project, which includes the feasibility study and coal testing of the Sengwa coal, has been done,” Murehwa said.
“Discussions are currently taking place on the coal resources parallel with the contractor who shall be producing the final documentation that will be used in seeking funding.
“Finalising on suitable technology to replace electrolysis and moving on to doing the project and commissioning it is a process that will take time and it is difficult at this stage to categorically state when electrolysis is going to be shut down,” Murehwa said.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
The country’s sole ammonium nitrate manufacturer had initially planned to decommission the expensive electrolysis plant by December 2012 and start the process of replacing it with a $700 million coal gasification plant.
Murehwa last year told Vice-President Joyce Mujuru that the coal gasification project was a priority because his company could not survive with the continued use of the expensive electricity.
Zesa charges 10 cents per kilowatt for commercial rates, but Murehwa says the company can only afford to pay three cents per kilowatt if it is to remain viable.
