HCCL mulls power generation
HWANGE Colliery Company Limited (HCCL) is exploring prospects of establishing a power generation plant at its Lubimbi coal fields to complement mining processes.
The Zimbabwe Stock Exchange-listed coal mining concern says in addition to electricity generation, whose capacity is yet to be determined, preparatory work towards developing mining operations at the Option Area have begun.
In a statement accompanying its financial results for the year ended 31 December 2022, which were released last week, HCCL said the development of the Option Area and Lubimbi coal fields is planned for the medium term.
“The company has, therefore, held stakeholder engagements at Lubimbi in preparation for the mining process.
The company is also looking at the prospects of electricity generation at Lubimbi to complement the mining process.
Preparatory work towards mining Option Area has begun,” it said.
Late last year, Lubimbi Power and Gas (Private) Limited submitted an application with the Zimbabwe Energy Regulatory Authority (Zera) to establish a 5MW coal-bed methane gas-fired power plant in Lubimbi area.
Lubimbi Power and Gas (Private) Limited intends to generate power from the proposed coal-bed methane gas for consumption by Rio Energy Private Limited, a subsidiary of RioZim.
Hwange Colliery said it also aims to grow its market share of coking coal sales in neighbouring countries, as its coking coal and coke meet quality specifications in the ferro-chrome industries and smelters.
“Plans to develop dedicated solutions for the delivery of coking coal and coke products in the region are underway,” it said.
“The company will continue in 2022 with the momentum it gathered at the end of 2021 onexports after it was negatively affected by Covid-19 during the first half of 2021.”
In 2015, the Government granted HCCL three new concessions in Western Area, Lubimbi East and West following concerns that the colliery’s present concessions would run out soon.
The new concessions, which are expected to prolong the lifespan of Hwange by 50-70 years, have an estimated resource of about 750 million tonnes of mainly coking coal and thermal coal.
The power generation plans at Lubimbi come at a time when the Colliery has entered into a capital financing deal from which it will receive equipment valued at US$15 million in the next two years.
Without disclosing the identity of the partner in the deal, the recapitalisation drive will increase production to 50 000 tonnes per month in the second half of 2022, 100 000 tonnes per month in the first half of 2023 and a further 150 000 tonnes per month in the last quarter of 2023.-The Chronicle
