DANDE Capital Holdings said this week it had the commitment to see through deals amounting to US$1,3 billion to start three thermal power stations and a
coal mine in Dande Valley.
Speaking in an interview with businessdigest this week, Dande’s chief executive officer, Evison Musanjeya, said its resources arm, Elé Resources, which secured the deal with Chinese firm, China Machine-Building International Corporation (CMEC), for a joint venture to start a coal mine and two thermal power plants in the country, had enough resources from its claims to support the deal.
“We expect that by mid-2007, implementation of the thermal power plant projects will have started. We expect to commission the plant18 to 24 months after starting the project,” said Musanjeya.
Elé Resources holds coal, nickel and chrome claims along the mineral-rich Great Dyke belt.
Proven chrome resources amount to 15 million tonnes, while nickel resources under Elé’s claims amount to 4 million tonnes, Musanjeya said.
Exploration for coal resources under Elé’s claims is still unknown, but exploration is in progress, he said.
Dande, whose main role in the deal is to mobilise resources, will be responsible for structuring the deal between its subsidiary firm and the Chinese company.
Dande however separately clinched a deal with China National Construction and Agriculturals machinery Import and Export Corporation (CAMCO) to establish a chrome mine in Dande under a deal overseen by Vice-President Joice Mujuru during her official visit to China early June.
Musanjeya said they expected to supply their Chinese partners with geological data from their pre-feasibility study on the coal claims. The Chinese, who have asked for two weeks to study the document upon receipt, will then assemble a team of engineers who will come into the country for a month to undertake their own study of the coal claim before preparing a financial and technical proposal.
Musanjeya said Dande and its associate firm would use its mineral resources to support deals with the Chinese.
CMEC is expected to supply Elé Resources with equipment for the power generation plants and the coal mine.
The supplies would be backed by guarantees of chrome supplies from CAMCO’s joint venture with Dande.
Musanjeya said the power plants are expected to have a combined output of at least 600MW and to cost around US$700 million to construct. An additional US$600 would be required to develop infrastructure for the coal mines and the power plants.