Business Reporter
COAL mining firm Makomo Resources has invested $200 million cumulatively in the last five years making it one of the country’s largest investors, a senior official said.
“We have so far spent about $200 million into mining and we are looking at spending a substantial amount for the thermal power project,” Mr Raymond Mutokonye, one of the directors said.
He said the investment has resulted in Makomo becoming one of the leading coal producers, fairly competing with Hwange Colliery, which once dominated the sector.
“We are now competing fairly well on the local market. We are also looking at expanding our markets. We are pushing some washed peas into Zambia and we are looking at the Democratic Republic of Congo, South Africa, Botswana and Mozambique.
“We recently commissioned our coal washing plant and this has enabled us to expand product range,” said Mr Mutokonye.
Makomo, which received the first runner-up award from the Zimbabwe Investment Authority (best mining investor category) raised its production capacity from about 200 000 tonnes per month to 300 000 tonnes following the commissioning of the new washing plant. Prior to the commissioning of the plant, Makomo Resources was mainly producing power coal.
The coal washing plant removes impurities from coal which is graded into different sizes. Mr Mutokonye said broadening of the markets was the company’s future growth strategy.
Makomo in partnership with Southern Energy, a Mauritius based company intends to build a 660 megawatt thermal plant early next year. Civil works are expected to begin in the first quarter next year once all regulatory approvals are obtained.
Makomo is anticipating the project will take two years from the time of commencement Mutokonye could not reveal how much the project would cost saying the company was still going through a procurement process to come up with an actual budget.