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In a move closely watched by the energy-intensive mining sector, ZESA Holdings confirmed it is awaiting final Cabinet approval for a proposed US$455 million partnership with Indian firm Jindal to refurbish Hwange Power Station’s Units 1 to 6, Mining Zimbabwe can report.
By Rudairo Mapuranga
The deal, structured under a 15-year Rehabilitate, Operate, and Transfer (ROT) arrangement, is designed to bolster the country’s electricity generation capacity at a time when the mining industry is grappling with persistent load-shedding that stifles production and expansion.
Speaking on the proposed agreement, ZESA Group Acting Chief Executive Officer, Engineer Cleopas Nyachowe, said the refurbishment will restore the six units to a combined capacity of 920 megawatts, raising the station’s total output to 1,500 megawatts.
“They have the right to refurbish the asset, operate it, and then we share the revenues; we are sharing revenues, not profit, so this is where we are reducing our risk,” Eng. Nyachowe said. “They are taking over all the operational expenses that are going to happen for that period, and then at the end of the period, hand back the asset and staff.”
He acknowledged that the final decision rests with the highest level of government. “It has been very tough negotiations… Obviously, the last view comes from Cabinet, they will have to give us a go-ahead,” he stated, adding that fine-tuning of the revenue-sharing model to ensure the country benefits more is part of the ongoing discussions.
For Zimbabwe’s mining sector, the single largest foreign currency earner, a reliable power supply is non-negotiable. Operations from platinum and gold processing to chrome smelting are heavily dependent on consistent electricity. The current power deficit has forced many mines to rely on expensive diesel generators, significantly driving up operational costs and cutting into profit margins.
The successful refurbishment of Hwange would provide a direct and substantial boost to the national grid, alleviating the load-shedding that currently hampers mining output. The project is a cornerstone of broader efforts by the Second Republic to modernise the country’s energy infrastructure and secure grid reliability, which is a fundamental prerequisite for attracting investment in the mining sector.
Once approved, the project will see units taken out of service one by one for refurbishment over a 48-month period. “They could do it faster, but the limitation is that you can only be given one machine at a time. If we were able to give two machines, then we would actually cut down the period,” Eng. Nyachowe noted.
The mining industry will be watching closely for the Cabinet’s decision, which would signal the start of a critical project to power Zimbabwe’s economic growth.
