Golden Valley Mine plans to build 7 MW solar power...

Golden Valley Mine plans to build 7 MW solar power plant

Zim Now Writer

Golden Valley Mine intends to raise US$13 million through a private placement to build a 7MW solar plant at its gold mine in Kadoma, the Zimbabwe Economic Review said on its X wall.

The company has already signed an agreement with Okavango GVM Power, a special purpose vehicle, comprising three local shareholders as the main contractor of the solar project.

Under the agreement, Okavango GVM Power was awarded a 15-year (initial term) power use agreement by Golden Valley Mine.

Of the US$13 million, as much as US$9.1 million will be a 10-year amortizing loan, with a 10 percent interest rate per annum.

It was granted a Prescribed Asset Status.

About US$3.9 million is being raised as equity finance for a consideration of a 78 percent ownership stake in the project and the offers can consider ordinary shares and or redeemable cumulative preference shares.

The solar plant will ensure the mine has a more reliable and uninterrupted power supply, according to an investor prospectus.

Zimbabwe has for the past five years been reeling under severe power shortages due to recurring stoppages at Hwange Thermal Power Station.

This was compounded by low production at the Kariba hydroelectricity plant which suffered low water levels during the past two years, subdued imports and shortages of coal.

“Golden Valley Mine earnings average US$34 million per year and net profit of around US$5 million per year. The solar system is designed to power the mine from 6am to 6pm as ZETDC (Zimbabwe Electricity Transmission and Distribution Company) power is rarely available during these daylight hours, and the mine currently relies more on Gensets thereby incurring approximately US$600 000 per month on power, including Genset-related expenses,” the prospectus said.

New Sahara Ventures will be responsible for technical development, turnkey engineering, procurement, construction, commissioning, and maintenance of the plant, said the prospectors.

Power shortages in the country have forced companies to invest in solar energy to mitigate the impact of load-shedding.

Some mining companies that have already invested in solar energy are gold miner Caledonia and Zimplats.

Other corporates investing in solar energy are Varun Beverages, which has signed a deal to install a 2.5 MW rooftop solar plant at the Pepsi bottler’s Harare factory.

Solar projects recently completed by local companies include a 1 MW plant by Schweppes; a 118kW plant by Surrey Meats and a 600kW facility by Kefalos.