The increased demand for coal in Zambia, Africa’s richest copper producer has given rise to other producers of the product to consider investing in the Southern African nation as the economy expands. Four more coal mines, besides the traditional Maamba Collieries and the Chinese owned and run Collum Coal mine will be set up in Sianzongwe in the same location as the traditional two others following proposals by the two companies a foreign and an indigenous to invest in the country before the end of the year and increase output.
Maamba Collieries, Zambia’s oldest and largest producer of coal in the country and the Southern African region is expected to come on stream by July this year after privatization formalities are completed by Nava Bharat of Singapore and the Zambian government through the Zambia Development Agency.
According to reports, India’s EMCO Overseas PTE Limited and Kazinse Mining Limited, a wholly-Zambian owned company based in Sinazongwe district near the border with Zimbabwe held a scoping meeting on February 19 with various interest groups for the development of USD 120 million coal mine and thermal electric power generation plant.
Mr Richwell Siamunene MD of Kanzinse Mining Limited flanked by Mr Dakshina Murthi manager of EMCO said that the estimated cost of both the coal mine and power plant is USD 160 million. The power plant will initially have a capacity of generating 300 MW and will be upgraded to 600 MW within 5 years. The final target of 600 MW will be approximately equivalent to the current electric power consumption of the mining industry and as such will be of significant economic impact on Zambia and reduce the power deficit the country is facing.
Mr Siamunene said that the project will involve coal mining at an annual capacity of 2.5 million tonnes from the two concession areas. The process of coal power generation will include the use of coal as a source of energy to heat water and produce steam which will then drive the turbines connected to electric generators.
It is initially proposed that two by 150 MW generators will be installed. The key inputs for the proposed power generation will be coal as source of energy and water for steam generation. The proposed plant’s water consumption at the 600 MW production capacity is about 72,000 cubic meter squares per day and Kanzinse River is earmarked as source of water for the plant.
The company will construct a dam across the river to store water for use during low flow periods of the year and to guarantee water availability throughout the year. The produced electricity will be moved through a 330 kilovolt transmission line and fed into the Zesco national grid.
Mr Oliver Pelete district commissioner said that Indongo Mining Company of South Africa, operating as JV with some Zambians seeks to invest USD 10 million in another new coal mine in Sinazongwe. The company is presently setting up a new foundation where the new plant will be installed after the sale of the company by the Government. Indongo Mining has already done environmental impact assessment studies and anytime the company should be operational.
According to plans, Indigo seeks to put up a coal processing plant and mining equipment with an initial 250 labour force. About USD 30,000 each will be paid to about 60 households expected to be displaced to pave way for the new mine.
The Zambian government released 65% stake in Maamba Collieries Limited to Nava Bharat Singapore Private Limited last year at a cost of USD 26 million while through the Zambia Consolidated Copper Mines Investment Holdings retained 35% shares and a golden share in Maamba Collieries to ensure continued development of the mine.
(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)
