Zimbabwe Zhongxin Coking Company (ZZCC) has announced that its plans to expand its 50MW thermal power plant have been put on hold due to financial challenges linked to a significant drop in the price of coke. This development comes as the company continues to construct two new automated recovery coke oven batteries at its Madumabisa site, a project employing 80 locals and 60 Chinese personnel, Mining Zimbabwe can report.
By Rudairo Mapuranga
According to the Ministry of Mines and Mining Development’s 2024 report following their visit to Matabeleland North, one of these new batteries is 90% complete and scheduled to commence operations by the end of the second quarter in 2025. Once completed, the facility is expected to produce 600,000 tonnes of coke annually. However, the drop in coke prices has negatively affected ZZCC’s profit margins, stalling capital projects, including the much-anticipated expansion of the thermal power plant.
The report noted that “the thermal power plant expansion project is on hold”, a significant setback for the company’s energy ambitions. ZZCC, through its sister company ZZEC, operates in the Chaba area within the Hwange Colliery Company Limited (HCCL) concession, mining coal to supply both coking coal for ZZCC’s coke production and thermal coal for the power plant. Despite the production of 432,000 tons of coke projected for 2024, the market’s downward pressure on prices has impacted the company’s ability to invest in its thermal power capacity.
In light of these challenges, the Ministry’s Mining Development Directorate recommended cost-saving measures to mitigate financial strain. The report suggests that the company could make use of excess coke oven gas for flame stabilization at the existing thermal power plant. By utilizing this resource, ZZCC could reduce operational costs, helping to ease the burden of low-profit margins.
As the company continues construction on its new coke oven batteries, there is hope that these cost-saving strategies will enable it to move forward with its planned thermal power expansion, thereby contributing to Zimbabwe’s energy security. Until then, the completion of the new Coke batteries and their scheduled start-up in mid-2025 remains the primary focus for ZZCC as it navigates the challenges posed by the global Coke market.
