MAAMBA Collieries Limited is planning to expand the thermal power plant to 900 Mega watts from the initial 300 Mega watts in view of the growing demand for electrical power in Zambia.

The company initially plans to set up a 300 MW thermal power project in Southern Province which will be connected to the national grid.

Mr Gurram Venkata Narayana MCL chief operating officer urged the Government to explore the possibility of allotting additional coal blocs to the mining company for long-term sustainability of the power plant.

Mr Narayana said they had concluded the evaluation and selection of the Engineering Procurement Contract (EPC) for the first phase of the 300 MW against a global tendering process.

He said that "The commencing of civil works by SEPCO whom MCL has signed for the construction of the thermal power plant would be after obtaining environmental clearance from the Zambia Environmental Management Agency."

He added that his company was on the verge of completing the mine revival plan with substantial capital expenditure in the region of USD 50 million already committed and advanced to SEPCO.

He also said MCL had so far submitted an Environmental Impact Assessment to ZEMA and a public hearing was set for February 2 2012.

Mr Narayana said up to November, 2011, Nava Bharat Pty Limited and Zambia Consolidated Copper Mines Investment Holdings have brought in USD 44.16 million and USD 5.25 million respectively.

He said the funds had been utilised for capital expenditure for the integrated Coal and Power project, mine operating expenses and for cleaning the liabilities and payments of early voluntary separation schemes.

Mr Narayana said Nava Bharat and ZCCM-IH were committed to supporting the integrated coal and power project, not only for the first phase of 300 MW but also for the second phase of the power generation.

MCL was incorporated in 1997 through the Zambia Industrial and Mining Corporation and the ownership was subsequently transferred to ZCCM IH prior to privatisation through a global tendering process.

(Sourced from www.times.co.zm)