WORK on the $5,2 billion coal-to-fuels project, born out of
the tie-up between Government and a Canadian investor, is expected to begin
immediately after the ground-breaking ceremony on June 1, and is expected to
create more than 20 000 jobs in both downstream and upstream industries over
the next three years.
Geologists are set to be deployed on site this week, while
mining equipment is currently being mobilised from South Africa.
Verify Engineering Private Limited – an agent of the
Ministry of Higher and Tertiary Education, Science and Technology Development –
entered into joint venture and shareholders’ agreements with Nkosikhona
Holdings, an investment vehicle of Magcor Consortium Group of Companies of
Canada.
The two entities will operate under a joint venture
company, Vectol Zimbabwe.
Verify Engineering chief executive officer, Engineer
Pedzisai Tapfumaneyi told The Sunday Mail yesterday that work on the project
will commence immediately after the ground-breaking ceremony.
He said equipment is presently being mobilised from South
Africa.
“The project will enable Zimbabwe to have energy security
and revive its economy. The project is fully endorsed by the Government as it
is key to national economic development and self-sufficiency in terms of all
liquid fuels, fertilisers and a whole range of other chemicals.
“Accordingly, it was granted national project status. In
pursuit of this objective, Verify Engineering produced a bankable feasibility
study in December 2017 for the development of coal-to-liquid fuels and
chemicals project.
“This became the basis upon which Nkosikhona Holdings was
engaged,” said Eng Tapfumaneyi.
“A Memorandum of Understanding (MoU) was then signed
between Verify Engineering and Nkosikhona Holdings on the 5th of February 2018.
“Nkosikhona Holdings subsequently expressed their
commitment and readiness to invest US$5,25 billion in the project as FDI during
the Investor’s Conference organised by the Ministry of Higher and Tertiary
Education, Science and Technology Development, which was held on the 9th of
March 2018 and officially opened by His Excellency, The President.
“The Joint Venture and Shareholder Agreements have gone
through the requisite stages and approvals and were signed on the 17th of May,
2018 by the contracting parties – Verify Engineering (Pvt) Ltd and Nkosikona
Holdings.”
The project is primarily a coal beneficiation project for
the production of liquid fuels, liquefied petroleum gas, oxygen, waxes,
compounds for agriculture such as fertilisers, tar and solvents like plastic
manufacturing.
At full throttle, the beneficiation plant will produce
eight million litres of liquid fuels daily against the national consumption of
five million litres.
The project has since been awarded national project status,
which allows companies to import duty-free capital equipment.
It is believed that the venture mirrors similar projects by
South Africa’s energy company, Sasol, which is globally reputed for converting
natural gas and coal to liquid fuels.
Magcor Consortium of Canada will bankroll the project.
According to Eng Tapfumaneyi, while the coal mining venture
is expected to begin next month, construction of the beneficiation plant in
Lusulu will take between three to four years.
Vectol will in September invite companies to bid for the
construction of the plant through an open tendering process.
An estimated 50 000 metric tonnes of coal reserves mined by
Verify Engineering at its Mkwasine mine over the last 14 years have since been
transferred to Vectol as part of the deal.
“We are looking at between 15 000 to 20 000 direct and
indirect jobs. As an example, Sasol produces 25 million litres a day and it
employs 35 000 people.
“It pays more than $2 billion a year in taxes and dividends
to the South Africa government.
“With this project, we are literally going to close our
borders in terms of importing some chemicals, plastics and some
pharmaceuticals.
“But it is the plastics and agro-chemicals industries that
will stand to benefit the most from this. We are not going to import.
“The plant will produce eight million litres of fuel and
the country requires around four million litres a day. We will have enough to
satisfy local demand.
“But as the economy grows, obviously the eight million we
are producing will not be enough to satisfy local demand.” Sunday Mail
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