Coal exploring company, African Energy Limited has entered into a non-binding Memorandum of Understanding (MoU) with Zambia’s electricity utility ZESCO Limited and Maysen and Borowski Investments Pty Ltd, an Australian based investment and corporate advisory firm.
In the MoU, the parties have agreed to work together to explore the potential for the delivery of 300MW of base-load electrical power from African Energy’s Sese Coal and Power Project into ZESCO’s grid in Southern Zambia, 500 km to the north of Sese.
Furthermore, African Energy will also undertake a desktop study to evaluate preferred options for the transmission and integration of 300MW of power supply from Sese into Southern Zambia. African Energy said preliminary studies confirmed that there were no fatal flaws in the transmission options under evaluation.
Further, ZESCO will provide access to its technical capability and information to assist African Energy with the transmission and integration study. M&B will assist African Energy and ZESCO to meet the objectives of the MOU.
Zambia is currently experiencing a period of strong economic growth centred on new mine and smelter developments in the Copper belt in the northern part of the country. African Energy however seems keen to exploit such an advantage. The Botswana Stock Exchange (BSE) listed mining company is optimistic that the new developments plus the expansion of several existing large scale mines is leading to a substantial increase in demand for power, thus the need for such agreements.