South Africa's Eskom expected to set up a 400 megawatt power generating plant in Zambia.

By John Chola -23/06/09

South Africa’s energy company Eskom is expected to set up a 400 megawatt electricity generating plant in Zambia.

The 400 megawatt plant is expected to be established at Maamba which hosts Zambia’s Maamba Collieries Limiteds, a coal mining company.

Media reports in Zambia today indicate that Eskom will want to utilize the low grade coal of Maamba Collieries Limited which is ideal for the venture.

A Manager at Zambia’s Maamba Collieries Limited (a mine based in the Southern part of the country) has told a government ran media that Eskom is willing to buy and utilize the low grade coal reported to be lying idle at the mine.

There is currently 60, 000 metric tones of already mined coal begging for a market at Maamba Collieries Limited.

A total of 78.2 million tonnes of coal reserves is estimated available in the Maamba Collieries assigned area.

Over 60.2 million tonnes of coal is proven and 18 million tonnes is probable.
Further exploration and reserve development is in order as the underground potential may well be greater than known today.

There are two open cast mines operating at Maamba in the Kanzize and Izuma basins with an annual capacity to produce between 600,000 and 800,000 metric tonnes of saleable coal, depending on demand and other constraints.

The Zambian government says reserves in the Maamba assigned area can last for at least ninety seven (97) years assuming that the mine is operating at full capacity and producing 800,000 metric tonnes of coal per annum.

There is a Coal Preparation Plant (CPP) with a rated capacity to wash about 700,000 to 800,000 metric tonnes of coal per year.

The existing ropeway has the capacity to transport between 600,000 to 700,000 metric tonnes to Masuku Railway Terminal per annum.

A company called Scrirocca Limited was last April awarded a contract to mine Maamba coal.

Scrirocca Limited has invested US$ 7 million in Maamba.

The Government of the Republic of Zambia (GRZ), through the Zambia Privatisation Agency (ZPA) has put up Maamba Collieries Limited for privatisation through an acquisition of a controlling stake by suitably qualified private sector investors.

The government approved the sale of at least 70% shares by competitive tender.

Government says it is open to considering various innovative arrangements, as may be proposed by the potential investor that would result in control of mine moving to the private sector and result in the recapitalisation of Zambia's major coal producer.

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