Zimbabwe’s Biggest Miners Seek $182 Million for Solar Projects

(Bloomberg) -- Some of Zimbabwe’s biggest miners are seeking $182 million to develop 200 megawatts of locally-generated solar power, according to the head of the renewables company responsible for the projects.

The agreement was signed between Grid Africa and the Intensive Energy User Group, whose members include Impala Platinum Holdings Ltd.’s Zimbabwean unit, Tsingshan Holdings Group Co.’s Afrochine Smelting Pvt. Ltd and RioZim Ltd. among others.

“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 faces an energy shortfall that often triggers the state-owned power company to implement rolling blackouts to balance supply and demand. The worst drought in four decades has compounded the crisis, cutting supplies from hydropower plants. Several miners rely on imported power from neighboring Mozambique to operate.

Zimbabwe boasts the second-largest platinum deposit and high-grade chromium ores in the world, and mining contributes about 12% to the country’s gross domestic product and makes up around 80% of its exports, according to the US International Trade Administration. Additional and cheaper electricity is likely to significantly increase the sector’s contribution to economic growth.

The first phase of the deal focuses on mining companies with ready-to-go projects that have the necessary licenses but lack financing, according to Moyo. “Large mines benefit from dedicated grid infrastructure, enabling them to source power flexibly. Transitioning to local solar generation will offer significant cost and foreign exchange savings compared to importing power,” he said.

Grid Africa emerged from Distributed Power Africa, initially linked to Zimbabwean billionaire Strive Masiyiwa.