banner

Screen Shot 2015-03-11 at 12.22.19 PM
913 Views

Shumba partners SA firm to develop power plant


Shumba Coal has partnered with a South African firm, Mulilo Renewable Project Developments, for the joint development of the Mabesekwa Export Independent Power Plant (MEIPP), which will export power to the neighbouring country.

The MEIPP is a 300 MegaWatt (MW) energy capacity project with a minimum 260 MW net supply to grid after auxiliary and mine consumption.  The project will entail building a coal-fired power plant with a captive coal mine, to take part in the South African Coal Base Load Independent Power Producers (IPP) programme. Last year, South Africa asked IPPs to submit proposals to build coal-fired plants as part of a string of initiatives aimed at ending chronic electricity shortages in that country.

In a statement released on Friday, the two companies noted that within a two month-period following the signing of the Heads of Agreement (HOA), they would enter into a comprehensive Joint Development Agreement (JDA), which shall include detailed conditions of the partnership.

“During this period, the parties will only negotiate exclusively with each other. Additional developments will be forthcoming and shareholders will be kept appraised accordingly,” reads the statement.

Shumba Coal Chairman, Alan Clegg said the agreement is a further development in Shumba energy development strategies. “The signing of this HOA with Mulilo is a further landmark development in Shumba execution of our stated strategy and a further testimony to the discipline of management in matching our assets and projects with the best partners under stressed market conditions,” he said. “Mulilo has a first class track record of delivery which, matches Shumba culture and this I believe will now translate into the creation of a new and strong economic contribution to the Southern African energy market for sustainable development, while creating strong value for our shareholders and all stakeholders alike,” said Clegg.

Mulilo is an IPP developer and investor which was originally formed in 2008 and has developed over the last few years a portfolio of 400 MW of grid-connected power plants under various IPP programmes run by the Department of Energy in South Africa.Shumba Coal intends to develop one or more 300MW or larger power stations in addition to producing coal for domestic and regional consumption. Recently Shumba coal entered into a binding sale and purchase agreement with Daheng Group Botswana for the acquisition of Mabesekwa Prospecting license near Francistown. This was part of its strategy of investing in Botswana based energy projects to supply affordable energy domestically and into the region. Among Shumba Coal energy projects includes 300MW Sechaba energy project near Morupule.  Currently Shumba is in the process of the renewing another prospecting license number that will be finalised by the Botswana Ministry of Minerals, Energy and Water Resources.

Source: Mmegi Online


Energy-Resource

Book your seat here.

Join the discussion here


Follow Alive2Green on Social Media

TwitterFacebookLinkedInGoogle +

Recently Published

QM2 frame
»

Eskom and Transnet need to borrow billions more

Eskom and Transnet need to borrow billions more than anticipated in ...

Screen Shot 2017-02-17 at 11.57.06 AM
»

SA’s polystyrene recycling growth disproves its ‘unrecyclable’ status

Polystyrene recycling in South Africa showed increased growth in ...

Screen Shot 2017-02-17 at 11.44.04 AM
»

Water scarcity: Why government must expand micro-irrigation coverage

The focus of the government has to be on expanding micro-irrigation ...

Screen Shot 2017-02-17 at 10.31.57 AM
»

Young, digital and keen to travel: Youth Travel at ITB Berlin

Why not explore the world instead of lying on the couch? This year, ...

Screen Shot 2017-02-06 at 12.57.08 PM
»

Pakistan turning into a water-scarce country, say experts

ISLAMABAD: Leading experts on water resources are of the view that ...

Screen Shot 2017-02-06 at 11.51.04 AM
»

Construction of Jeffreys Bay Hospital to start this year

WITH a multi-million investment, creating new jobs, construction of ...

Screen Shot 2017-02-06 at 11.19.57 AM
»

Big Oil’s new fashion accessory: “green gas” plants

So, here’s the good news. Big Oil is increasingly looking at ...

Screen Shot 2017-02-06 at 11.11.38 AM
»

South Africa confirms presence of invasive pest that infests maize

South Africa’s department of agriculture said on Friday that ...

Screen Shot 2017-01-30 at 10.53.13 AM
»

Joburg council hopes to reintegrate electricity, waste, water entities – Mashaba

Power, Joburg Water and Pikitup are one step closer to falling under ...