Lusaka, Zambia 25 Aug 2010 (ABN) – Zambia will start processing coal after its major coal mine Maamba Collieries Limited MCL announced it will in the next three months open a processing plant ending a five year long suspension on coal production.

The reviving of a new processing plant which will cost US 108 million dollars is expected to trim down importation of the commodity from foreign production countries and further reduce transportation costs.

MCL is partly owned by Nava Bharat Ferro Alloys Limited NBFA but the Zambian government is also a major stake in the mine.

“The idea is to revamp production of coal but unfortunately the equipment was not usable because it was obsolete and declared redundant though we will pull it out,” chief executive officer Kalunga Mumba said in an interview.

A delay in revamping of a new plant comes at a loss as major coal consumers in the country mainly other mines have switched from using coal to electricity in their mining operations.

In its quest to be one of the major energy sources MCL has sourced US 100 million dollars that it hopes to construct a new thermal power plant that will contribute 300 megawatts of electricity in the country.

The thermal plant which is expected to take over two years to complete will cost US 508 million dollars and funding is hoped to be sourced for syndicated finance through international support.

Energy experts say the new thermal plant will help feed and boost the energy sector especially in the production of electrify as Zambia’s power system was ailing as characterized by massive load shedding and blackouts in most parts of the country.

The production of the 300 megawatts of electricity is expected to be doubled with the resumption of production coal.

Zambia is one country after South Africa in Sub-Saharan Africa currently troubled by power shortages due to high consumption and demand that cannot be sustained by its state owned utility company Zambia Electricity Supply Corporation ZESCO.

Zambia exports power to other neighboring countries.

Daniel Tonga