Sable Mining to invest US$500m in Hwange power Station

HARARE – AIM-listed exploration and development concern Sable Mining Africa has entered into a memorandum of understanding to develop a 600 megawatt thermal power station with a Chinese company in Zimbabwe.

Sable Mining on Monday said they were looking at developing the US$500 million power plant at the 19 236 hectare Lubu coal project with CITIC Construction. Lubu is located in the Mid Karoo Zambezi coal basin in Hwange, in the north west of Zimbabwe.

Sable Mining Chief Executive Officer Andrew Groves said: “Considering the energy and power dynamic in southern Africa, there is a major demand for a secure and reliable power supply, which will continue to grow unless new power sources are established. Our proposition is to develop a 600mw coal power station in conjunction with CITIC and with the support of the Zimbabwean government.”

Groves said the move would represent a significant step forward in solving the ongoing energy deficit in southern Africa.

“The combination of our quality coal together with CITIC’s access to power plant infrastructure, financing and construction expertise has the potential to create a long-term power supply which, due to Lubu’s strategic location in north-western Zimbabwe, could supply both domestic and regional demand once connected to the established power grid.

“Our team now looks forward to exploring the commercial potential of this MoU further with the CITIC team and moving forward with this project at speed,” he said.

Sable Mining also has coal interests in Botswana and South Africa through Delta Mining. – ANA