Shumba partners SA firm to develop power plant

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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 coalmine, 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.

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