The Sunday News
Fairness Moyana in Hwange
THE Government has adopted a use it or lose approach in the coal mining sector as it seeks to encourage production of the mineral, which is key to power generation.
In an interview, Mines and Mining Development Minister Winston Chitando said those failing to utilise their special coal mining concessions will have them repossessed.
“We have a $12 billion target as a mining industry and of that $1 billion will be from coal and hydrocarbons.
“We actually have lots of coal special grants throughout the country and we are enforcing the use it or lose it policy and those who have special grants will lose them because there are sitting on them.
“What we want is production so that we generate employment and foreign currency.
“We already have a lot of coal special grants to support demand which unfortunately the majority have not been utilising,” said Minister Chitando.
He said he has also received assurances from coal producers that demand for coal following the expansion of the Hwange Power Station Stage Seven and Eight as well as the construction of a 150MW thermal power plant would be met.
“This is short term to long term where in the short term we are looking at increased supplies to Zesa power stations while in the long term we are looking at the preparedness of the producers to meet the requirements of Stage 7 and 8.”
During a meeting with the minister in Hwange recently, coal producers pledged to increase production levels by 100 percent as part of supporting Government’s US$1 billion coal mining industry by 2023.
The coal mining industry is set to increase coal output from 10 million tonnes to 20 million tonnes per annum following Government interventions.
Demand for coal is set to rise as more thermal powers stations and coal processing plants are being constructed in the district.
The projects are at various levels of completion with work at Hwange Power station having taken off, while construction of another thermal power plant by Zimbabwe Zinghxon Electrical Energy (ZZEE) within the three year time-frames.
When operational both projects will require a combined 750 000 tonnes of coal per month to fire.
