Screen Shot 2015-03-11 at 12.22.19 PM

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


Book your seat here.

Join the discussion here

Follow Alive2Green on Social Media

TwitterFacebookLinkedInGoogle +

Recently Published


Sustainability in building design has won Renée Minnaar of the University of Pretoria a place at 31st Corobrik Architectural Student of the Year Awards

Sustainable building demands architectural design that aims to ...

Rose Foundation

ROSE Foundation – protecting our dwindling water resources

There are many reasons that attribute to the growing water crisis in ...


Growthpoint becomes the first company to issue a Green Bond on the JSE

Growthpoint Properties is the first South African company to issue a ...


Durban woman director to Put Foot for charity

Courageous business woman and director, Karen Petersen, is swapping ...


Innovation and an appreciation of South Africa’s cultural diversity stand out in The University of the Free State, Corobrik Architectural Student of the Year Awards

Innovation is the standout quality that differentiates design ...


#movethedate of Earth Overshoot Day

Humanity demands more than Earth can regenerate Calculate your ...


Schneider Electric accelerates fight against climate change at One Planet Summit

Schneider Electric executives collaborate with other sustainability ...


We are open for business despite drought : South Africa Tourism

A moral based decision, valuable for the environment South Africa has ...


Ramaphosa should shift to green energy – Greenpeace

Environmental organisation Greenpeace is demanding newly-elected ...