Zimbabwe signs $5.2bn fuel deal with South Africa firm

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.

Zimbabwean President, Emmerson Mnangagwa.

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.

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.

“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,” said President Mnangagwa.