Harare - South African-based company LontohCoal has said
that it will invest $9bn (R74.43m) in Zimbabwe over the next five years for its
coal-to-liquids plant and a coal slurry pipeline at its Lubumbi coal project.
Speaking at the recent Zimbabwe Mining Indaba, CEO Tshepo
Kgadima said the company is targeting large-scale capital investment starting
from 2013 up to 2018.
Of the $9bn, $7.5bn would be used for the coal-to-liquids
plant which will produce about 50 000 barrels per day (bpd) and create 5 000
direct permanent jobs. The group has already concluded a feasibility study.
To date 64 boreholes have been drilled at 250m spacing and
the group expects to mine 80 000 tonnes per day of thermal coal to produce the
50 000 bpd.
Kgadima said at the moment Zimbabwe consumes about 13 000bpd
of liquid fuels, which is expected to grow to 20 000bpd by 2017-18.
He said once the plant is up, Zimbabwe will realise $2bn in
foreign exchange savings as the fuel will substitute diesel and petrol
Kgadima said the project will pay over $9.8bn to government
in royalties and taxes over the next 20 years, and procure goods and services
including labour over the next 20 years for $41bn
The group also projects to pay out dividends of $3.2bn to
Zimbabwean shareholders over 20 years.
*Malcom Sharara, is Fin24's correspondent in Zimbabwe
* Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.