POWER DEFICIT LOOMS IN ZIMBABWE
HARARE - Zimbabwe is staring the possibility of crippling electricity shortages in the near future if the Reserve Bank Zimbabwe (RBZ) does not release funds requested by coal miners to import spare parts, it has emerged.
Coupled with low rains this year, which might impact on hydroelectricity generation at Kariba Hydro Power Station, the power situation might get dire.
The country’s top coal miners - Hwange Colliery Company Limited (HCCL) and Makomo Resources - could not reveal the amount of foreign currency they have applied for, but concurred that production levels have “unacceptably” plummeted
Last week, sources told The Sunday Mail Business that Zimbabwe Power Company (ZPC) officials visited Makomo Resources’ operations in Hwange recently to check on the magnitude of their challenges given the low coal volumes being delivered for electricity generation
It is understood that ZPC - the electricity generating arm of Zesa Holdings - is getting about 2 000 tonnes of coal per day from miners, which is a far cry from the 8, 000 tonnes required.
Unconfirmed reports suggested that ZPC is left with coal stocks of just over 100, 000 tonnes, which could be sufficient to generate electricity for about 10 days, unless the RBZ releases payments for the purchase of spare parts to ramp up production.
ZPC spokesperson Fadzai Chisveto, requested for questions in writing but did not respond during the last two weeks.
However, HCCL managing director Engineer Thomas Makore, last week confirmed that foreign currency challenges have negatively impacted their operations and turnaround strategy.
“Foreign currency shortages have caused delays in the resuscitation of our underground mining operations.
“The shortages have also caused shortages of spare parts for our plant and equipment. Our contractors are also affected because they need imported spare parts for their equipment.
Our productivity has reduced due to lower equipment reliability and availability,” said Eng Makore.
He declined to reveal the extent of the production decline saying as a Zimbabwe Stock Exchange (ZSE) listed firm, they are now in a closed period and cannot release share price sensitive information. -THE SUNDAY MAIL.