Inga 3 feasibility tenders expected this year, says BHP Billiton aluminium president .
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By: Martin Creamer
23rd May 2008
A committee established to study the feasibility of building the 4 000-MW Inga Three hydroelectric project in the Demo-cratic Republic of Congo (DRC) is expected to invite public tenders this year, BHP Billiton president for aluminium Xolani Mkhwanazi tells Mining Weekly. BHP Billiton has signed an agreement with the DRC government to investigate, with the DRC’s national electricity utility Snel, the possibility of setting up an aluminium smelter in the DRC’s promising Bas Congo region, where a conceptual smelter study was completed at the start of 2007. “We think there is a project there,” says Mkhwanazi.
Envisaged is a $3-billion alumi-nium smelter which will use up to 1 600 MW of electricity to produce 800 000 t/y in its first phase.
BHP Billiton has acquired suitable land in Muanda, a DRC town lying on the Atlantic Ocean coast at the mouth of the Congo river, where a promising port site has been identified.
The Inga Three prefeasibility study has been completed and BHP Billiton has agreed to lend the DRC government $10-mil- lion in order to expedite the full Inga. The feasibility study is now under way, pending African Development Bank (ADB) funding.
As part of this agreement, a com- mittee made up of the DRC’s depart- ments of energy, public enterprises, finance, industry and commerce, Snel and BHP Billiton was formed to oversee the feasibility.
The committee, which meets monthly, has since appointed a chair- person, identified a project leader and agreed to terms of reference.
SNC Lavelin’s prefeasbility study is being reviewed and the World Bank and ADB rules will be followed in inviting inter- national tenders.
“We are hoping that international tenders will be invited in the next two months,” Mkhwanazi tells Mining Weekly.
BHP Billiton intends synchronising its aluminium smelter pro-ject with the Inga Three project.
“Absolute synchronisation is important to us so that first power coincides with first metal,” says Mkhwanazi.
If everything goes according to plan, the first aluminium could be produced in the first quarter of 2015, from alumina imported from Australia and South America.
In an entirely separate transaction, BHP Billiton has entered into an agreement with two other entities to build an alumina refinery in Guinea, which could come on stream in 2012.
“We are now leading the finalisation of a full bankable feasibility study and we are optimistic that there is a project there as well,” says Mkhwanazi.
If there is, the refinery proposed will have a capacity process of at least three-million tons of bauxite a year, bringing it close to Worsley’s 3,5-million-ton-a-year capacity in Australia, which is the prime supplier of alumina to BHP Billiton’s energy-constrained aluminium smelters on Southern Africa’s east coast, one at Hillside, in KwaZulu-Natal, and the other at Mozal, in neighbouring Mozam-bique. South Africa’s energy crisis has resulted in BHP Billiton having to close potlines at the Bayside, also in Kwazulu-Natal.
BHP Billiton, with a production of 1,3-million tons a year, is the world’s fourth-largest aluminium producer.
|
By: Martin Creamer
23rd May 2008
A committee established to study the feasibility of building the 4 000-MW Inga Three hydroelectric project in the Demo-cratic Republic of Congo (DRC) is expected to invite public tenders this year, BHP Billiton president for aluminium Xolani Mkhwanazi tells Mining Weekly. BHP Billiton has signed an agreement with the DRC government to investigate, with the DRC’s national electricity utility Snel, the possibility of setting up an aluminium smelter in the DRC’s promising Bas Congo region, where a conceptual smelter study was completed at the start of 2007. “We think there is a project there,” says Mkhwanazi.
Envisaged is a $3-billion alumi-nium smelter which will use up to 1 600 MW of electricity to produce 800 000 t/y in its first phase.
BHP Billiton has acquired suitable land in Muanda, a DRC town lying on the Atlantic Ocean coast at the mouth of the Congo river, where a promising port site has been identified.
The Inga Three prefeasibility study has been completed and BHP Billiton has agreed to lend the DRC government $10-mil- lion in order to expedite the full Inga. The feasibility study is now under way, pending African Development Bank (ADB) funding.
As part of this agreement, a com- mittee made up of the DRC’s depart- ments of energy, public enterprises, finance, industry and commerce, Snel and BHP Billiton was formed to oversee the feasibility.
The committee, which meets monthly, has since appointed a chair- person, identified a project leader and agreed to terms of reference.
SNC Lavelin’s prefeasbility study is being reviewed and the World Bank and ADB rules will be followed in inviting inter- national tenders.
“We are hoping that international tenders will be invited in the next two months,” Mkhwanazi tells Mining Weekly.
BHP Billiton intends synchronising its aluminium smelter pro-ject with the Inga Three project.
“Absolute synchronisation is important to us so that first power coincides with first metal,” says Mkhwanazi.
If everything goes according to plan, the first aluminium could be produced in the first quarter of 2015, from alumina imported from Australia and South America.
In an entirely separate transaction, BHP Billiton has entered into an agreement with two other entities to build an alumina refinery in Guinea, which could come on stream in 2012.
“We are now leading the finalisation of a full bankable feasibility study and we are optimistic that there is a project there as well,” says Mkhwanazi.
If there is, the refinery proposed will have a capacity process of at least three-million tons of bauxite a year, bringing it close to Worsley’s 3,5-million-ton-a-year capacity in Australia, which is the prime supplier of alumina to BHP Billiton’s energy-constrained aluminium smelters on Southern Africa’s east coast, one at Hillside, in KwaZulu-Natal, and the other at Mozal, in neighbouring Mozam-bique. South Africa’s energy crisis has resulted in BHP Billiton having to close potlines at the Bayside, also in Kwazulu-Natal.
BHP Billiton, with a production of 1,3-million tons a year, is the world’s fourth-largest aluminium producer.