LONDON (Alliance News) - Sable Mining Africa Ltd shares rose on Monday morning after it said it has entered into a memorandum of understanding with China-based construction and services provider CITIC Group to develop a coal-fired power plant in Zimbabwe.
Sable shares were up 12% to 0.594 pence per share on Monday morning.
The exploration and development miner said it has signs the MoU with CITIC Construction Co Ltd, a subsidiary of CITIC Group.
The pair will develop a 600 megawatt coal-fired power plant at Sable's Lubu coal project using coal mined from Sable's Lubu project, which in the Mid Karoo Zambezi coal basin in the Hwange mining district.
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.
"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," said Chief Executive Andrew Groves.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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