Glencore to invest $360m to upgrade Congos hydropower project

EBR Staff Writer Published 28 November 2014

Glencore and its partner in Congo are planning to upgrade hydroelectric plant in Congo, with an investment of $360m.

The move comes as the mining companies are seeking solutions to address to the power shortages, which are affecting the development of the mining projects.

Mutanda Mining board member Pieter Deboutte told Reuters: "If you want to (produce) 1.5 million tonnes of copper, this is only possible if you solve the energy problem."

The copper project, Mutanda Mining, is owned by Glencore and the Fleurette Group, which is controlled by Israeli billionaire Dan Gertler.

Located in Katanga, Mutanda and the Kamoto mine, in which Glencore and Fleurette has a stake, have been importing power up to twice the price of domestic power from Zambia and using diesel generators that cost $3m per month.

In order to overcome the issue, Glencore and Fleurette planning to repair the two turbines at national utility company SNEL-owned 1,424MW Inga 2 hydropower plant to generate 450MW of power, of which 380MW will be reserved for Mutanda and Kamoto mines.

The firms will also modernize about 2,000km of transmission lines which supply power to Katanga.

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Glencore to invest $360m to upgrade Congos hydropower project