CEC: Zambia firm to invest $900 mln in power by 2018

Zambia’s Copperbelt Energy Corp. (CEC), the country’s largest supplier of power to its mines, plans to invest over $900 million in new projects by 2018 to meet rising mining sector demand, it said on Tuesday.

CEC plans to develop five new hydro sites in northern Zambia, with a combined potential to produce 800 megawatts (MW), company spokeswoman Chama Kalima told Reuters.

“These would be developed in sequence, with the first two sites alone are estimated to cost $800 million,” Kalima said.

An associated transmission line to connect northern Zambia to the Copperbelt region through the Democratic Republic of Congo is estimated to cost $100 million, she said.
Kalima said the projects are subject to multiple approvals because they involve two countries.

“Commissioning is expected in 2018, should all necessary requirements and approvals be complied with within the planned period,” Kalima said.

CEC will invite other investors to help develop the projects but will work alone in the initial stages, she said.

Kalima said the five projects would benefit from Zambia’s introduction of tax breaks for new power projects.

CEC has also made significant progress in developing the 40 MW Kabompo hydro power project in north-western Zambia, expected to be commissioned in 2015 at a cost of $170 million, she said.

Kalima said miners’ demand for power in Zambia, Africa’s largest copper producer, was rising fast, with CEC’s sales up by 8 percent to 470 MW in 2010 from 436 MW in 2009.

Kalima said CEC needed to boost its output after having signed new supply agreements with mining companies building new projects and expanding existing mines.

Foreign mining companies operating in Zambia include Canada’s First Quantum Minerals, London-listed Vedanta Resources , Glencore International of Switzerland and Metorex of South Africa.

(Reporting By Chris Mfula, Editing by Ed Stoddard and Jane Baird)

Source: futurespros.com