Zimbabwe’s mining giants seek $182 million for solar projects

Some of Zimbabwe’s largest mining companies are seeking $182 million to develop 200 megawatts of locally generated solar power, according to the head of the renewables company overseeing the projects.

The agreement was signed between Grid Africa and the Intensive Energy User Group, which includes Impala Platinum Holdings Ltd.’s Zimbabwean unit and Tsingshan Holdings Group Co.’s Afrochine Smelting Pvt. Ltd, and RioZim Ltd., among others, according to Bloomberg.

“Talks with various funding partners, such as mining companies, banks, developmental financiers, and vendors like Power China and RIC Energy, are progressing,” Norman Moyo, co-founder and chief executive of Grid Africa said in an interview. “The financing structure will consist of about 70% debt and 30% equity.”

Zimbabwe is grappling with an energy shortfall frequently forcing the state-owned power company to implement rolling blackouts to manage supply and demand.

The situation has been worsened by the worst drought in four decades, which has reduced hydropower output. Many miners depend on imported electricity from neighbouring Mozambique to keep operations running.

Zimbabwe is home to the world’s second-largest platinum deposit and high-grade chromium ores. Mining contributes roughly 12% to the country’s gross domestic product and accounts for about 80% of its exports, according to the US International Trade Administration. More affordable electricity could greatly boost the sector’s contribution to economic growth.

The first phase of the deal targets mining companies with projects that are ready to go but are lacking in financing, according to Moyo. “Large mines will benefit from dedicated grid infrastructure, allowing them to source power more flexibly. Shifting to local solar generation will provide substantial cost and foreign exchange savings compared to importing electricity,” he explained.

Grid Africa originated from Distributed Power Africa, which was initially associated with Zimbabwean billionaire Strive Masiyiwa.