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Golden Sibanda : Senior Business Reporter

DEMAND for power in the mining sector is projected to increase by an estimated 25 percent to 150 megawatts, assuming mining firms undertake more investments in the sector. In fact, demand for electricity in the mining sector is projected to grow incrementally from 2016 through to 2020 by almost 82 percent driven by planned expansion projects.According to Zimbabwe Economic Policy Analysis and Research Unit, demand for electricity will increase by 13,5 percent in 2017, 6,5 percent in 2018 and 11,1 percent in 2019.

“The expansion of selected projects and the commissioning of the platinum Base Metal Refinery in 2017, among other factors, is expected to increase the sector’s electricity demand to sustain mining operations, ZEPARU said.

Zimbabwe Platinum Mines is working on resuscitating its base metal refinery in Selous, about 80 kilometres from Harare, in response to Government’s call for beneficiation and value addition to derive optimum benefits from minerals, as opposed to exporting them raw.

But more imminent is the expected steady increase in demand for electricity, by an average of 25 percent to 150 megawatt in this year from its 2015 level, assuming that the mining firms undertake planned investments in the sector.

Immediate demand for power is expected to come from increased ore supply contribution from Zimbabwe Platinum Mine’s Ngezi South open pit, which started operating in second quarter of 2015 and increased production from underground mines following the redeployment of fleets from its collapsed Bimha Mine in August 2014.

Apart from Zimplats, the country’s largest producer of platinum group metals, the country also has two other large platinum mines in Mimosa Mining Company and Unki Mine, which are pursuing PGM production expansion projects.

A few other platinum projects, in which millions of dollars are being invested, are at various stages, but Zimbabwe’s mining sector is far more than just platinum with gold, coal, chrome, diamonds and nickel equally significant constituents of this strategically important sector.

Mining contributes about 16 percent to Zimbabwe’s gross domestic product and generates over 60 percent of the country’s export earnings. The sector was designated as the engine to anchor Government’s medium plan, Zim-Asset.

After 2015, the demand for power is expected to continue rising steadily by to 170MW, 181MW and 201MW in 2017, 2018 and 2019, respectively. “In 2020, the demand is expected to jump by 81,5 percent to 210MW,” said ZEPARU in its latest Economic barometer, Volume 20.

The policy and economic research think tank said demand for power will increase in the mining sector despite difficulties in acquiring affordable lines of credit, which may hinder some of the expansion projects in the sector.

“If planned projects take off, the national demand for electricity will increase over time putting too much pressure at the national power utility ZESA,” ZEPARU said.

However, if ZESA’s planned expansion projects coupled with increase in power supply from independent power producers come to fruition, this may reduce or eliminate the current national electricity deficit in the medium term.

The Zimbabwe Power Company has awarded tenders for the expansion of Kariba South Hydro Power Station’s units 7 and 8 and this will add 300MW to the national grid.

The project is set to start partially feeding the grid in 2017.

ZPC has also signed another contract with Sino Hydro, who will extend Kariba South’s power generation capacity, for the expansion of Hwange thermal power station, units 7 and 8, which will bring another 600MW to the grid. Financial closure for the project is expected to be concluded by beginning of the second half of this year.

Power utility, Zesa’s generation unit has also awarded tenders for construction of three 100MW solar power stations in Gwanda, Bulawayo and Munyati and for diesel or gas powered emergence power plants in Mutare and Dema.

Further, the parastatal recently concluded a multimillion dollar deal with local and foreign companies for the construction of a 30MW hydro power station in Gairezi, in the eastern highlands of the country, Manicaland.