Africa Business In The News South Africa

Zimbabwe signs $5.2bn fuel deal with South Africa firm

Johannesburg-  The Zimbabwean government has signed a 5.2 billion dollars deal with a South Africa firm for the production of more than 8 million litres of liquid fuels per day from coal in Hwange.

The deal was signed between South African firm, Nkosikhona Holdings and Verify Engineering Pvt Ltd, an agent of the Zimbabwe’s government in Harare.

The deal will see the beneficiation of coal for production of liquid fuels, fertilisers and chemicals, the state-controlled Herald newspaper reported on Friday.

The deal also involves coal production and the setting up of the beneficiation plant.

A ground breaking ceremony for the plant is scheduled for June 1 while mining operations to start in September, it reported.

It will take at least three and a half years before the country starts benefiting from the value addition and beneficiation.

The project will operate under the joint venture company Vectol Zimbabwe Pvt Ltd.

Zimbabwe holds vast coal reserves, particularly in the northwestern and southern regions.

Zimbabwean President, Emmerson Mnangagwa, said the liquid project was a good example of commodity-based industrialisation in value addition.

“My government fully endorses this project and has granted it national project status.

“I am confident that it will contribute to our energy, security and self-sufficiency in terms of liquid fuels, fertilisers and a range of other chemicals,” he was quoted by the newspaper report as saying.

Xinhua

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