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Maamba power station

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Maamba Power Station is a 300-megawatt (MW) coal-fired power station in Southern Province, Zambia.

Location

The undated satellite photo below shows the plant near Maamba, Sinazongwe District, Southern Province

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Background

The power station was proposed by Maamba Collieries Limited (MCL), the largest coal mining company in Zambia. The station would be mine-mouth and fueled by low grade coal, a by-product of mining at MCL's Maamba mine. The first 150 MW Unit is scheduled to be completed by October 2014, and the second 150 MW Unit by January 2015.[1]

In 2011, MCL appointed SEPCO Electric Power Construction Corp (China), a large supplier of power generating plants, substations, and transmission lines, for implementation of the power project. The power will be sold to Zambia Electricity Supply Corporation (ZESCO) Limited.[2]

In a March 2014 investor presentation Nava Bharat stated that the 300 MW power station would include a 50 kilometre long transmission line line. The company stated that it had entered into a Power Purchase Agreement with Zambia Electricity Supply Corporation.[3]

The 300 MW plant is planned for operation by 2016.[4] On May 1, 2016, the project was reported as 90% completed, with unit 1 planned for commissioning in June 2016 and unit 2 in July 2016.[5]

Units 1 and 2 were commissioned in July and August 2016, with commercial operation planned to begin shortly after.[6]

Potential expansion

The capacity may be increased to 600MW in the second phase, depending on demand for power in the region.[1]

In 2017 MCL said it was engaging key stakeholders in the mining industry on possibilities of increasing its thermal-generated power plant to 600 megawatts (MW) "in view of the growing electricity demand in the country." The cost is around US$850 million.[7]

Financing and ownership

Phase I: 300 MW

The estimated cost of the power project (phase I of 300 MW) is US$828 million. The Bank of China and the Industrial and Commercial Bank of China will provide US$300 million of the total funding, with $150 million provided by the Industrial Development Corporation of South Africa and the Development Bank of Southern Africa, and a further $65 million by a group of western banks including Standard Chartered and Barclays. Equity funding will be provided by Indian conglomerate Nava Bharat Ventures, which will own a 65 per cent stake in the project, and Zambian state-owned ZCCM Investment Holdings, which will own 35 per cent.[8]

Project Details

  • Sponsor: Maamba Collieries
  • Parent company: Nava Bharat Ventures (65%), ZCCM Investment Holdings (35%)
  • Location: Maamba mine, Sinazongwe District, Southern Province, Zambia
  • Coordinates: -17.3527223, 27.1859398 (exact)
  • Status:
    • Units 1-2: Operating
    • Units 3-4: Announced
  • Gross Capacity:
    • Phase I (Units 1-2: 150 MW)
    • Phase II (Units 3-4: 150 MW)
  • Type: Circulating fluidized bed
  • Projected in service: 2016 (Units 1 and 2)
  • Coal Type:
  • Coal Source:
  • Source of financing: The Bank of China; the Industrial and Commercial Bank of China; Industrial Development Corporation of South Africa; the Development Bank of Southern Africa; Standard Chartered; Barclays

Articles and resources

References

  1. 1.0 1.1 "Power Generation," MCL Website, accessed January 2013.
  2. Paul Baruya and John Kessels, "Coal prospects in Botswana, Mozambique, Zambia, Zimbabwe and Namibia," IEA Clean Coal Centre, Dec 2013. The report is available for purchase.
  3. "Nava Bharat: Investor Presentation", Nava Bharat, March 1, 2014.
  4. "Maamba mine’s 330 megawatt thermal power plant almost ready," Mining News, June 13, 2014
  5. "Zambia: Maamba Plant to Mitigate Power Deficit," All Africa, May 1, 2016
  6. Annual Report, Nava Bharat Ventures, August 2016
  7. "Maamba Collieries plans to increase generation," Zambia Daily, June 23, 2017
  8. Tildy Bayar, "China to fund Zambian coal-fired power project," Power Engineering, August 6, 2015

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