Zimplats is set to commission a US$60 million 45-megawatt (MW)
solar power plant next month, making the platinum group metals (PGM) producer’s
investment in energy solutions a total US$97 million.
The project follows the successful commissioning of a 35MW solar facility at a cost of US$37 million last year, and forms part of the platinum producer’s planned 185MW renewable energy portfolio.
Speaking at the Zimbabwe National Chamber of Commerce annual congress in Victoria Falls last week, Zimplats chief executive Alex Mhembere said the company had been compelled to invest in its own electricity infrastructure because of persistent power supply challenges.
“Last year we commissioned a 35-megawatt plant at a cost of US$37 million. In August, we are going to commission another 45 megawatts at a cost of US$60 million so that is already US$100 million invested outside our core business,” Mhembere said.
He said the miner has already committed approximately US$100 million towards power generation projects and intends to invest a further US$100 million to complete the planned 185MW solar programme before 2030.
The renewable energy investments are expected to provide reliable electricity for Zimplats’ expanding mining, smelting and processing operations, which form part of Zimbabwe’s drive to increase value addition within the mining sector.
According to Mhembere, inadequate electricity infrastructure has remained one of the biggest obstacles to expanding local mineral beneficiation.
“We were battling with the government when they were pushing us to go for beneficiation, and we said we don’t have adequate power for what we are doing now so we have had to fund our energy supply because Zesa could not guarantee us that supply,” he said.
To improve energy reliability, Zimplats has diversified its power sources through electricity imports, self-generation and renewable energy investments.
The company has also constructed a 330-kilovolt substation, one of the largest privately developed electricity infrastructure projects undertaken in Zimbabwe since independence.
Mhembere said dependable electricity supplies are critical for attracting investment into the mining sector, particularly given the lengthy development periods associated with large-scale mining projects.
He noted that mining investments typically require between 10 and 15 years before generating returns, making reliable infrastructure an essential consideration for investors.
“Not many companies will be able to spend huge sums of money in non-core business activities to support their core business,” Mhembere said.
He called for greater coordination between government and industry to ensure that investment in supporting infrastructure keeps pace with Zimbabwe’s ambitions to expand mineral beneficiation and industrialisation.
According to Mhembere, achieving higher levels of local mineral processing will require sustained investment in electricity generation and other critical infrastructure to improve the competitiveness of downstream mining projects.
Once commissioned, the new 45MW solar plant is expected to reduce Zimplats’ dependence on imported electricity while improving operational stability in an environment characterised by recurring regional power shortages.