RioZim engages international investors for power project

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LISTED mining concern Rio Zimbabwe Limited has engaged international investors for the Sengwa power project in Gokwe and expects to conclude talks soon.

VICTORIA MTOMBA

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.

6 COMMENTS

  1. This company fell to the dogs. Its a dead company now. Too much corruption happening there, nepotism, triabalism etc

  2. I have heard of the Sengwa mine power project since my high school days (early 90s) in the Chireya. I doubt if anything will come out of this project.

  3. I just don’t get it this company didn’t they come out last year saying they have identified a Chinese to mine coal at sengwa and weren’t they in a deal with a Malaysian company to develop sengwa when and what happening aren’t these some of the overpaid executives who just run to pappers when in actual fact he is just sitting in a high office in Harare when in actual fact there isn’t anything on the ground
    shame really

  4. Here is I think is going to happen when pigs fly and Sengwa Power Station comes on stream. It is going to be a 51/49 indeginisation patnership. The 51% equity will represent the coal in the ground and dividends to be shared and consumed among the political elite on our behalf. The power generated will be transmitted by the Powertel who as a monopoly can be expected to charge a premium. Among the many customers of this bountiful electricity will be government departments ,new farmers, and a host of struggling companies who have previously shown little inclination to pay their bills to ZESA a public company with state muscle as enforcer! What chances does a foreign funded power company have of enforcing corruption inflated tarriff payments by consumers without being perceived as an exploiter of the poor and regime change agent? Fat chance I say!

  5. Are there no other potential investors out there in the world coz I can hardly think of any other foreign investor to Zimbabwe besides the Chinese?personaly I’m of the view that such a trend is not good for business.if we are to trive as an economy we have to consider inclusivity & let go of the past because,honestly,what matters the most is not whether a cat is black or white,but rather it is whether or not it catches the mice.

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