Sengwa Coal Mine

Background

Sengwa started out as a JV Agreement between Rio Tinto Zimbabwe Limited and RTZ Mining & Exploration Limited, signed on 22 April 1994. The JV would focus on all activities directed toward ascertaining the existence, location, quality and quantity or commercial value of deposits or products at the Sengwa site. In 1994 RioZim Limited and Rio Tinto plc entered into an agreement to regulate their direct and indirect investments in Sengwa Colliery. In terms of that agreement, each of the parties acquired 50% of the issued and allotted shares in the company.

The Sengwa Coal Deposit is situated in North Western Zimbabwe, 450km from Harare, with proven ore reserves in excess of 525 million tones.

Resource Summary

• 525 Mt Measured
• 513 Mt Indicated
• 323 Mt Inferred
• 1,336 Mt Resource

The power station project is based on a coal resource of 1.3bn tonnes, capable of generating up to 2,000MW of power, almost as much as Zimbabwe’s total installed capacity. The proposed project envisages the construction of a number of smaller power plants over the next ten years. In order to achieve this goal, RioEnergy is in the process bringing in technical partners to help construct the power station.