Blanket Mine solar project operational next month
Victoria Falls Stock Exchange-listed gold-focused miner, Caledonia Mining Corporation has announced that its Solar plant at its Blanket Mine in Gwanda will be operational in August as the company pushes to shield its operations from the erratic electric supply the country is facing.
Rudairo Mapuranga
According to the company, Blanket Mine’s 12 MW solar project is expected to be operational by August.
“12 MW solar project is in the final stages of construction, should be operational in August. The Company has commenced the evaluation of a further phase solar project to provide Blanket’s peak demand during daylight hours,” the company said.
According to Caledonia outgoing Chief Executive Officer Steve Curtis, the project is expected to provide approximately 27 per cent of Blanket mine’s average daily electrical demand and reduce Blanket’s dependence on the grid and diesel power.
“To improve energy-supply security and minimise the effect of our operation on the natural environment, Caledonia is constructing a 12 MWac solar plant at Blanket. This project is expected to provide approximately 27% of Blanket’s average daily electrical demand, and reduce Blanket’s dependence on-grid and diesel power,” Curtis said.
Last year through its Chief Financial Officer Mr John Mark Learmonth Caledonia said electricity problems are a major operating difficulty in Zimbabwe.
The mining firm which has been performing significantly at its Blanket mine in Gwanda has had stronger cash flow and is hopeful that it will play a leading role in the achievement of the projected annual gold production target by 2023 in which the yellow metal is expected to rake in US$4 Billion annually by the year 2023.
However, according to the company, a combination of power outages becomes a challenge towards the achievements of the target as operational costs increase.
“The only significant operating difficulty in Zimbabwe remains electricity and it’s a combination of power outages, if not just straightforward shutdowns, we are just asked to reduce our power consumption in which case then we have to use the standby diesel generator,” Learmonth said.
The Company’s diesel consumption increased by 41 per cent in the year due to the generator running time increasing as a result of a deterioration in the grid supply.
Recognising the economic, environmental, and logistical challenges of running large-scale diesel generators for extended periods, Caledonia is constructing a 12 MWac solar plant.
Caledonia has contracted with Voltalia, an international renewables specialist, to construct a 12 MWac solar plant which will exclusively supply Blanket. At a construction cost of approximately $12 million, with an additional $2 million for expenses which include designs, tender process, obtaining licenses, site clearance, etc. The plant is expected to provide all of Blanket’s minimum electricity demand during daylight hours and approximately 27% of Blanket’s total electricity requirement during an average 24-hour period. Blanket will continue to rely on the grid and generators to provide additional power during daylight hours and at night.
Battery power is currently too expensive to justify its use to augment the solar plant, but the Company will continue to monitor this situation as battery technology develops. The Company will also evaluate a further phase for the solar project to provide Blanket’s peak demand during daylight hours, but this will require an agreement between the Company and the Zimbabwe authorities regarding the treatment of power that will be generated by a second phase that is surplus to Blanket’s requirements.