Oliver Kazunga, Senior Business Reporter
MINING giant RioZim says it has started courting regional and international investors for the development of a 1 400 megawatt thermal power plant at Sengwa in the Midlands.
In 2015, the mining concern announced it needed about $2,1 billion to build the colliery and a power plant at its vast coal concession in Gokwe.
In its audited financial results for the year ended December 31, 2016, the mining group said extensive exploratory work conducted over the years has proved a substantial resource of 1,3 billion tonnes.
“The bankable feasibility studies for both divisions (coal mining and power station) of the project were updated, enabling the company to have meaningful discussions with potential regional and international regional and international partners,” it said.
Following results of the exploratory work, investor appetite for the Sengwa project has seen a marked improvement in light of the forecasted power deficits within the region.
“The bankable feasibility studies for both divisions (coal mining and power station) of the project were updated,” said RioZim.
During the period under review, the mining group, which also has interests in Zimbabwe’s gold, chrome, nickel and diamond sectors, closed the year with a net profit after tax amounting to $2,5 million (2015: $8,8 million loss) for the first time since the adoption of a multicurrency system in 2009.
The group’s revenue grew by 15 percent to $65,2 million up from $56,5 million in 2015 and this was despite Empress Nickel Mine remaining under care and maintenance. —