- The mining sector's average annual growth rate is up to 9%
- Over US$1 billion has been invested by Chinese companies in acquiring lithium mines and establishing processing plants since 2022
- Government urges energy-intensive companies to produce their own electricity by 2026
Harare-The mining industry have seen a significant growth with an average of 9% per annum, mainly spared by lithium sector projects and production of iron and steel.
According to GlobalData, Zimbabwe is the world’s sixth-largest lithium producer, with output increasing by 428% compared to 2022.
Chinese companies have invested over US$1 billion in acquiring lithium mines and establishing processing plants since 2022.
Notable transactions include Huayou Cobalt’s purchase of Arcadia Mine for US$422 million and its subsequent US$300 million investment in processing facilities.
This increase in mining activities has driven demand for more electricity from as low as 280MW in 2010 to 700MW in 2024 the Chamber of mines CEO Isaac Kwesu said.
‘’ The projection from the survey that we did, we anticipate that in the next 3 to 5 years we will be requiring approximately 2000MW which is above what the country is currently generating’’.
Zimbabwe power producing plants, Hwange Thermal Power Station and Kariba Hydro-Electricity Power Station have an installed capacity of 1520 MW and 1050MW respectively.
However water levels for power generation at Lake Kariba has depleted below 4% resulting in an average of less than 300 MW per day while Hwange power production is being affected by ageing power plants and technical faults.
This will give a total of around 1200 MW per day against a peek demand of almost 2000 MW leaving a deficit of around 800 MW.
To cover for the energy deficit, government has lined up a number of power projects, but has also urged energy-intensive companies to produce own electricity by 2026.
Energy developer Tatanga Energy has signed a 30MW power purchase agreement with Greenco. Tatanga is licensed to develop an initial 50MW solar plant at Sable Chemicals, Kwekwe.
Old Mutual life launched a US$100 million private equity fund targeting renewable energy investments insurance .
The National Renewable Energy Policy aims to add 2,100 MW of renewable energy by 2030, focusing primarily on solar and hydro projects.
With abundant solar radiation averaging 20 MJ/m², Zimbabwe is ideally positioned for solar energy generation.
Additionally, resources such as bagasse, uranium, and wind energy present further opportunities for diversifying the energy portfolio.
Zimplats on the other end, has commissioned a US$36 million solar plant (35 MW) , the first phase of a planned 185MW project meant to secure the energy the mine needs to back up its US$1.8 billion expansion projects.
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