HomeBusinessGwayi $2b project to start next month

Gwayi $2b project to start next month

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HARARE — China Africa Sunlight Energy will next month begin construction of its Gwayi coal mine and residential complex worth $100 million, an official said on Tuesday, the first phase of ambitious $2,1 billion energy projects to be developed over five years.

The company’s deputy general manager Charles Mugari on Tuesday said both the mine and the residential complex to accommodate 1000 employees would be completed by early 2016.

“We will commence the civil works to construct the mine and residential complex by beginning of July,” he said.

As part of the first phase of the project, the company will also construct a 300 megawatt (MW) power station although the exact cost is yet to be determined.

Mugari said the company had also agreed on an average tariff with the state’s Zimbabwe Electricity Distribution Company for the plant, which had been submitted to the energy ministry through Zimbabwe Energy Regulatory Authority.

“We are now working on specific charges on energy and capacity charges, but these do not affect the average charge,” he said.

The company is still waiting for environment impact assessment for the power generation from the Environment Management Agency by end of the week.

He said the company had also entered into an arrangement with the Zimbabwe National Water Authority to inject $53 million into the construction of the Gwayi-Shangani Dam where it will draw its water from.

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

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.

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% of the adult working population is unemployed.

The company is also planning to establish a coking plant for coal required in processing of steel as well as build hotels and business complexes.

— The Source

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