An US$800-million coal mine deal, which has been on the cards for years, is set to take off, following the signing of a deal between the Zimbabwe Electricity Supply Authority (Zesa) and Clidder Minerals.

It involves the construction of a coal mine in the Hwange western coalfield, owned by Zimbabwe Power Company (ZPC), a power-generating subsidiary of Zesa, and two power units at Hwange power station.

Zesa, through ZPC, will hold a “yet to be disclosed but minority shareholding” in the venture. Clidder, an investment vehicle owned by businessperson Billy Rautenbach, will be the majority equity holder.

“Billy [Rautenbach] will have the majority stake in the joint venture and government, through Zesa, will be the minority shareholder,” says a source.

The board that will run the joint venture is already in place, the source adds.

“Earthmoving equipment has been lined up and it will soon be moved in to clear the roads.”

Currently, Clidder Minerals mines coal at Hwange colliery under a contract.

Zesa CEO Ben Rafemoyo has declined to comment on the latest developments.

Zesa is facing acute shortages of coal to run its largest thermal plant in Hwange and three small plants in Bulawayo, Harare and Munyati.

The coal shortages have resulted in subdued electricity supplies with indus- try and households in the country experiencing frequent power cuts.

The construction of additional thermal power units at Hwange has also been hampered by financial constraints.

The project has been on the cards for years.

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