Copperbelt Energy considers financing options for developmen

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Copperbelt Energy considers financing options for development of Kabompo hydro power project
Sunday, 21 Aug 2011

Copperbelt Energy Corporation, power service provider to the mines in Zambia is looking at financing options for its Kabompo mini hydro electricity plant expected to goggle USD 120 million at completion.

The project whose feasibility studies were finalized in 2010 is been found viable and when funded would add 40 MW of power to Zambia’s national grid and compliment state utility, known as Zesco in generation of electricity to local and export consumers.

Under the study, the project is determined to be viable on condition that geological and hydrological risks are adequately mitigated and tariffs established at cost reflective levels to make it viable.

Copperbelt power company, known as CEC is in discussion with Zambia Electricity Supply Corporation over tariffs which will this year be expected to concentrate on development of the projects to supply power to new mines on the Copperbelt, that include Konkola North Copper Mines, Mulyashi Mine under Non Ferrous Metals of China, Mopani Mine for its synclinorium project and Konkola Copper Mines’ Nchanga Refractory plant.

According to reports, the project upon completion would consume about 1,000 MW and about USD 15 million would be required for the task needed to reinforce and extend the CEC’s power infrastructure in Konkola North Mine project over the next six years and supply 100 MW.

The mine will start taking part in its phase one power requirement of 40 megawatts starting October this year while the over USD 370 million Mulyashi open cast project in Luanshya on the copper rich region of Zambia will need about 30 MW of power to start operations when commissioned by December 2011.

CEC, according to reports has to date spent USD 2.75 million on the project and the construction a new double circuit 220 kilovolt interconnector between Zambia and DR Congo, a JV being undertaken with CEC and that country’s energy provider, known as SNEL is ongoing. The cost of the Zambian portion is estimated at USD 16.5 million with the line facilitating the transfer of 550 MW between DR Congo and Zambia.

(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)