LISTED mining concern Rio Zimbabwe Limited has engaged international investors for the Sengwa power project in Gokwe and expects to conclude talks soon.
In an interview on the sidelines of a function held by the company recently, RioZim chief executive officer Ashton Ndlovu said the power project would result in the generation of 2 400 megawatts (MW) of power.
“We have started re-engaging several funders and contractors to develop the Sengwa power station,” he said.
“The international funders are from China and India. I cannot disclose much as we are still in the early stages of our discussions.”
Sengwa power project is one of the main projects that were expected to ease power problems in the country.
Sengwa has reserves of 1,3 billion tonnes of coal.
Current local power generation stands at 1 300MW against a peak demand of 2 200MW.
Ndlovu said the company was also working towards increasing the output at Cam and Motor project in Kadoma and announcements on the negotiations would be made in due course.
“We are finalising the Cam and Motor project and we will have new equipment that will see us making 1 500 tonnes a day,” Ndlovu said.
He said the company would be recapitalising Empress Refinery with a view of optimising existing capacity from the current
12 500 tonnes per year.
“The project is set to increase the capacity three-fold and has a capability of refining a lot of base metal generated in this country into saleable final products on the international markets,” he said.
The mining concern recorded a loss of $2,3 million for the six months ended June 2013 from $4,9 million in 2012 due to a strong growth in revenue and cut in finance cost.
The revenue of the company in the six-month period was up 83% to $56 million over the comparative period due to growth in business at Empress Nickel Refinery.