Power Plants Running Out of Coal

Source from:  Financial Gazette (Harare) March 1, 2006 Munyaradzi Mugowo 03/06/2006

STATE-run ZESA Holdings says three of its Hwange power generation plants have become redundant because of falling coal supplies, resulting in periodic blackouts. "We have had to close down three of our electricity generating units because of coal shortages. The situation is quite critical at the moment," Gata said. The critical coal crisis comes as Hwange Colliery Company (HCC) Limited is struggling to cope with high coal demand, driven by seasonal activities such as tobacco curing. The National Railways of Zimbabwe (NRZ has revealed that it has more than 100 rail wagons stationed at HCC waiting to deliver coal. NRZ deputy chairman David Govere told The Financial Gazette that Hwange was struggling to satisfy demand. "We have no less than 120 wagons waiting to pick coal in Hwange once it becomes available," said Govere. HCC managing director Godfrey Dzinomwa said the country's sole coal miner was trying to ramp up production to meet customer requirements after experiencing haulage equipment breakdowns in January. "We started the month not supplying everyone with the required coal tonnages because of breakdowns of haulage trucks. Our stocks went down as a result of that. But we are now ramping up production and we are expected to reach output levels of about 400 000 tonnes per month," Dzinomwa said. ZESA claims the resultant coal supply shortages have grounded its power generation plants and caused accelerated load shedding. Capacity utilisation at ZESA and HCC still remains sub-optimal due to low capital investments in the two companies which are plagued by plant dilapidation and a crippling domestic and foreign debt overhang. Last year HCC opened a new underground mine in its 3 Main Section after acquiring a new continuous miner from South Africa with an average output rate of about 120 000 tonnes per month. But even this US$82 million project, coupled with similar investments in old and new open cast mines, has failed to ease the country's power crisis. Production at Chaba mine, a new US$5 million open cast mine with an average yield rate of 100 tonnes per month, started last month and in the short run aggregate supply is expected to exceed national demand, currently estimated at about 300 000 tonnes per month. Enditem