Glencore invests in Congo hydropower as solution to blackouts
By Aaron Ross
KINSHASA (Reuters) – Glencore and its partner in Congo are ploughing $360 million into refurbishing the African nation's main hydroelectric plant as mining companies seek ways to overcome power shortages that are holding back projects.
But companies seeking to tap some of the world's biggest undeveloped mineral reserves say power shortages are preventing development.
With demand for generation capacity of 912 to 1,202 megawatts, Katanga is facing a deficit of up to 734 MW, according to an August report from national utility company SNEL, seen by Reuters.
Mutanda's Kamoto mine in Katanga suffered over 862 hours of power interruptions between May and September, according to company figures.
Glencore and Fleurette have now decided to take matters into their own hands by repairing two turbines at SNEL's 1,424 MW Inga 2 hydropower plant and upgrading about 2,000 km of transmission lines to take the power to Katanga.
The plan is to produce 450 MW, with 380 MW reserved for Kamoto. Mutanda will recoup the cost through reductions in utility bills, Deboutte said.
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Such solutions are within the reach only of the largest players. Others face an uncertain future.
For the long term, the government is counting on a new Inga 3 hydroelectric project with 4,800 MW of capacity. Construction of the dam is set to begin next year and be completed in 2020, according to SNEL.