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Sable Mining Africa Limited
21 September 2015
 

Sable Mining Africa Ltd / Index: AIM / Epic: SBLM / Sector: Natural Resources

21 September 2015

Sable Mining Africa Ltd ('Sable Miningor 'the Company')

MoU on Zimbabwean Coal Power Station Development

 

Sable Mining, the AIM listed exploration and development company, is pleased to announce that it has entered into a Memorandum of Understanding (the 'MoU') with a view to developing a 600MW coal-fired power plant at the Company's 19,236 hectares Lubu Coal Project in Zimbabwe ('Lubu'), with CITIC Construction Co., Ltd ('CITIC'), a subsidiary of CITIC Group, a Chinese based construction and services provider. 

 

Under the terms of the MoU, Sable and CITIC will explore the opportunities of using their respective expertise to work together to develop a commercial coal-fired power station at Lubu.  It is the intention that coal mined at Lubu (which is located in the Mid Karoo Zambezi coal basin in the established Hwange mining district of north-western Zimbabwe), will supply the power station. 

 

The MoU is supported by the Republic of Zimbabwe and the Ministry of Energy and Power Development, which is the administration in charge of power development, in line with its mandate to promote the development of energy and power generation in Zimbabwe.

 

Sable Mining CEO Andrew Groves said, "Considering the energy and power dynamic in southern Africa, there is a major demand for a secure and reliable power supply, which will continue to grow unless new power sources are established.  Our proposition is to develop a 600MW coal power station in conjunction with CITIC and with the support of the Zimbabwean government. This will represent a significant step forward in solving the ongoing energy deficit which is currently presenting significant obstacles to development within southern Africa.  The combination of our quality coal together with CITIC's access to power plant infrastructure, financing and construction expertise has the potential to create a long term power supply which, due to Lubu's strategic location in north-west Zimbabwe, could supply both domestic and regional demand once connected to the established power grid.  Our team now look forward to exploring the commercial potential of this MoU further with the CITIC team and moving forwards with this project at speed."

 

** ENDS **

 

For further information please visit www.sablemining.com or contact:

 

Andrew Groves

Sable Mining Africa Ltd

Tel: 020 7408 9200

David Foreman

Cantor Fitzgerald Europe

Tel: 020 7894 7000

Stewart Dickson

Cantor Fitzgerald Europe

Tel: 020 7894 7000

Richard Greenfield

GMP Securities

Tel: 020 7647 2836

Hugo de Salis

St Brides Partners Ltd

Tel: 020 7236 1177

Charlotte Heap

St Brides Partners Ltd

Tel: 020 7236 1177

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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