Makomo spreads wings. . . Starts coke, coal exports to Zambia

15 Nov, 2015 - 00:11 0 Views
Makomo spreads wings. . . Starts coke, coal exports to Zambia Makomo mines

The Sunday News

Makomo mines

Makomo Resources washing plant

Dumisani Nsingo, Senior Business Reporter
COAL miner Makomo Resources has started exporting coal and coke to Zambia, as it starts seeing results of its capital expansion projects which culminated in the installation of a $14 million coal washing plant late last year.

Makomo Resources general manager Mr Samson Mabvira expressed satisfaction about the demand of their product in Zambia and hinted that prospects of tapping into other regional markets were high.

“We are always looking for new markets, we just found our way into Zambia and we are still trying to extend what we are doing right now. We started delivering in Zambia sometime this year,” Mr Mabvira said.

The company last year started processing coal at its Entuba Coalfields in Hwange after acquiring a $14 million coal washing plant.

The move was part of beneficiation process which was meant to convert coal into coke.

The company’s biggest customer, however, is Zesa’s subsidiary, Zimbabwe Power Station (ZPC) where it delivers about 100 000 tonnes per month. It also supplies its coal to tobacco farmers and other industries locally.

“Most of our coal has been consumed internally, the bulk of it to ZPC, tobacco farmers and various industries within the country but as with the external market it’s a new dimension which we are exploring and we are even looking into the Democratic Republic of Congo. We have dropped some coal in Ndola and Lusaka and once it’s in Ndola you are already talking about DRC. There are DRC companies who are picking coal from here (Zimbabwe). If it’s in Ndola they might as well pick it from there so we are looking into DRC as well,” Mr Mabvira said.

Makomo Resources produces over 200 000 tonnes of coal a month but has capacity to produce 450 000 tonnes following its massive recapitalisation programme it undertook over the last two years.

“Our export markets are going to grow because what we are seeing is that Zambia opening doors for us means we can do even bigger things. So I’m happy with what is happening so far. So we just need to consolidate that,” Mr Mabvira said.

Meanwhile, the company is in the process of arranging a Power Purchase Agreement to ascertain the company, which would buy its electricity upon the construction of its proposed $1,5 billion 600 megawatt (MW) thermal power station in Hwange.

“We are in the process of looking for a financier but for us to get financed we need to establish who is going to buy our power within the country or region. This is the work we are doing right now. When we do it on very firm basis that’s when we can go to the financiers and say can you finance this project for us because we have a company which has promised to buy power from us,” Mr Mabvira said.

The other issues which are expected to be finalised before commencement of the construction work are the acquisition of a tax exemption certificate, investor’s project or legal due diligence, land registry, grid connection design, lender’s due diligence and the financial clause.

Mr Mabvira said feasibility studies at the proposed site for the construction of the power station were carried out early this year by Chinese firm Sino Hydro.

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