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Sable and CITIC enter MoU to develop a Zimbabwean coal power plant

Sable Mining has entered into a MoU with CITIC Construction Co. Ltd (CITIC), a subsidiary of CITIC Group. Sable intend to develop a 600 MW coal-fired power plant at its 19 236 ha. Lubu coal project, located in the Mid Karoo Zambezi coal basin in the established Hwange mining district of north-western Zimbabwe.

The Republic of Zimbabwe and the Ministry of Energy and Power Development is in charge of power development. In accordance with its mandate to encourage the development of energy and power generation in Zimbabwe, it has supported the MoU between Sable and CITIC.

The terms of the MoU enable Sable and CITIC to explore the opportunities using both company’s respective expertise to develop a commercial coal-fired power plant at Lubu. It is planned that coal mined at Lubu will supply the power plant.

Sable Mining CEO, Andrew Groves, commented: "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 600 MW coal power station in conjunction with CITIC and with the support of the Zimbabwean government. This will represent a significant step forward in solving the ongoing energy deficit, which is currently presenting significant obstacles to development within 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-west Zimbabwe, could supply both domestic and regional demand once connected to the established power grid. Our team now look forward to exploring the commercial potential of this MoU further with the CITIC team and moving forwards with this project at speed."

source: http://www.worldcoal.com