Zimbabwe’s mining industry is under mounting pressure from high electricity tariffs that the Chamber of Mines Zimbabwe has described as “unsustainable” for operations, Mining Zimbabwe can report.
By Ryan Chigoche
In its Quarterly Members’ Brief for the second quarter, the Chamber stated that the cost of power is eroding viability, forcing companies to explore alternative supply arrangements to maintain production.
While the first half of the year saw a relatively stable electricity supply with only minor outages caused by transmission faults and storms, the Chamber cautioned that stability could be short-lived.
Without priority allocation during peak demand periods, the sector risks disruptions that could undermine output and export earnings.
Against this backdrop, the Chamber’s Electricity and Power Development Committee has been engaging with independent power producers (IPPs) that offer solutions to supplement the grid supply.
Proposals have been received from GEnergy, Grid Power, Lafrica Energy, Genesis Energy, Unifyd Energy and SolarX Power.
Mining companies have been urged to engage these firms directly while the Chamber continues to source more partners capable of delivering reliable and cost-effective power.
Some operators are already moving ahead with self-generation projects to shield themselves from both price volatility and potential shortages.
Platinum producer Zimplats is advancing a 185 MW solar power development in phases, with the latest 45 MW stage under construction.
Once completed, this will bring its total solar capacity to 75 MW, following the earlier commissioning of a 35 MW plant.
The Chamber said it is also maintaining pressure on the government to review electricity tariffs for the mining sector, arguing that competitive pricing, alongside investment in alternative generation, is essential to safeguard jobs, stabilise production and keep Zimbabwe’s mining industry competitive on the global stage.
