- December 16, 2019
- Posted in LOCAL
African Lithium Company, Prospect Resources Ltd (ASX: PSC, FRA:5E8) (“Prospect” or “the Company”) is pleased to announce that the Company has signed a secure power supply agreement (“SPSA or “the Agreement”) with Zimbabwe Electricity Transmission & Distribution Company (ZETDC) for the supply of power to the Arcadia Lithium Project (“Arcadia”).
Arcadia’s primary source of power supply is from the existing Lake Kariba hydroelectric power station, whose main power distribution lines run adjacent to Arcadia, some 15 kms away via the Atlanta substation.
Material terms of the Agreement:
1. Commencement Date: 1 January 2020
2. Term: Three (3) years from Commencement Date;
3. Renewal: Automatic renewal for another three years;
4. Tariffs are approved by the Zimbabwe Energy Regulatory Authority; and
5. In the event of a major system fault, maintenance or major power supply shortfalls that may temporarily interrupt power supply to Arcadia, ZETDC is required to provide advanced notice in line with electricity regulations providing quality assurance.
Prospect’s Managing Director, Sam Hosack, said “The development of the Arcadia Lithium Mine must be underpinned by secure, long term energy supply and the SPSA is the first stage in this process. Secondary sources of power, including a possible solar farm, will now be a focus for the team.”
This release was authorised by Mr Sam Hosack, Managing Director of Prospect Resources Ltd.